FxWirePro: Daily Commodity Tracker - 21st March, 2022 
German manufacturing sector ended 2016 on a positive note. Germany Markit Purchasing Managers' Index (PMI) rose to 55.6 from 54.3 in November to reach its highest level in 35 months. Rising demand from Asia and the United States were seen as the main driver.
Both output and new work rose sharply in December, with new business rising for the 25th consecutive month with the rate of growth just below the record over that period. Domestic demand saw robust improvement. New business wins were reported in Asia, Europe and the US.
Responding to the rising demand, manufacturers raised their output at a quicker pace. The rise in production was the highest since July, it said. Inflationary pressures also increased in December. Input costs rose at the fastest pace since June 2011. The weaker euro helped to drive up import costs, Markit said.
German economy grew 0.7 percent in the first quarter, 0.4 in the second quarter and a modest 0.2 in the third quarter. Encouraging signs for further growth in 2017 were seen. Companies look set to hire in an effort to raise operating capacity, following the sharpest increase in backlogs of work.
"The manufacturing sector is therefore likely to help overall GDP growth accelerate from the modest 0.2 percent pace seen in the third quarter." said Philip Leake, Economist at IHS Markit.
