German manufacturing PMI rose to a 32-month high of 56.5 (flash 56.3) in January from 54.3 in December.
Output and new orders rose at the sharpest rates in nearly three years, while overseas demand strengthened markedly, employment continued to grow and backlogs accumulated sharply.
"The German economy looks set for a strong performance in the first quarter of the year, which comes as a relief after official data indicated that German GDP increased a disappointing 0.4% in 2013," says Markit.
The DAX is -0.3% and the euro is +0.05% at $1.3496. (PR)