Manufacturing and services businesses in Germany are producing more employment opportunities, new figures indicate.

The Purchasing Managers' Index (PMI) for the private sector climbed during February to 61.5, a record level previously seen only in June 2006, according to figures from Markit.

Reuters reports that exports are driving manufacturing growth, although the services sector is witnessing some constraints on capacity, with some firms struggling to recruit the right employees.

There are indications the pace of expansion may be slowing and Markit economist Chris Williamson stated: "There are backlogs of work arising at a record pace, but employment growth slowed and we can count a number of instances in which there were difficulties in recruiting staff."

He added that a dip in industry orders and output in Germany during December 2010 was a "blip" resulting from extreme weather conditions, stressing economic recovery remains on track.

According to German statistics agency Destatis, the number of people in employment in the country climbed in December 2010 year-on-year by 427,000 to 40.8 million, the highest figure since reunification.

Posted by Alex Donnell