Germany's private sector grew at a faster pace in November, although the upturn was only moderate amid subdued manufacturing growth, flash survey results from IHS Markit showed on Tuesday.
The composite output index climbed to 52.8 in November from 52.0 in the previous month. The reading was forecast to fall to 51.0.
Output was again weighed on by supply delays in November, with manufacturers in particular recording a lacklustre rise in factory production.
The manufacturing Purchasing Managers' Index dropped to 57.6 from 57.8 a month ago. Nonetheless, the score stayed above the expected level of 56.9.
The services PMI improved to 53.4 from 52.4 in October. The score was also above economists' forecast of 51.5.
"Overall, the flash PMI data point to a slightly improved trend for business activity, but supply delays and inflationary pressures remain a key cause for concern and are likely to weigh further on growth in the coming months, especially if these constraints further stifle demand," Lewis Cooper, an economist at IHS Markit said.