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IHS Markit’s flash composite Purchasing Managers’ Index (PMI) revealed that growth was up to 51.1 from 50.2 at the end of 2019.
It comes as growth in services activity picked up, rising from 52.9 to 54.2, and the pullback in manufacturing eased, rising to 45.7, contracting at a slower rate.
IHS Markit economist Phil Smith said “the storm clouds over the German economy may be starting to clear”.
“Demand has started to firm up a little both at home and abroad, which is reflected in a first rise in new business for seven months,” Smith said.
Despite growth in Europe’s largest economy, the Eurozone economy as a whole only grew at a “muted” rate at the start of 2020 as the bloc’s economy continued to expand at the same slight pace it did in December.
IHS Markit’s flash composite Purchasing Managers’ Index (PMI) was level at 50.9, while other data revealed that growth of services activity eased slightly, while the manufacturing sector moved closer to stabilising.
However, with a manufacturing PMI of 47.5, which was a five-month high, the sector continued to contract for the 12th consecutive month. Anything lower than 50 represents a contraction.
Andrew Harker, associate director at IHS Markit said: “Output growth was unchanged from the modest pace seen in December, signalling that the economy failed again to record a pick-up in growth momentum.
“The failure of growth to accelerate was in spite of some areas of positivity. The service sector remained in expansion, while the worst of the manufacturing downturn looks to have passed and industry appears to be moving towards stabilisation.