The pace of growth in German manufacturing held at a three-year high in January as output grew at its fastest pace since January 2001, a survey showed this morning .
The BME/Reuters Purchasing Managers' Index, based on a survey of 400 companies, was unchanged from December at aseasonally adjusted 53.0, remaining above the 50 mark that separates expansion from contraction for a fifth month.
A sub-index measuring output rose to 55.1 from 54.9, while another for new orders signalled a seventh straight month of growth.
The strength of Europe's common currency, which last month rose to a record high of nearly $1.29, has put pressure on some companies to cut prices to compete with relatively cheaper foreign competition, the survey showed.
An index measuring output prices remained below the no-change level of 50 in January, as it has done every month since data were first collected in September 2002.
The survey said although the strong euro has helped hold down the cost of raw materials paid for in dollars, rising demand and high oil prices pushed up average input prices.