German Private Sector Unexpectedly Gathers Pace After Trade Deal

German private-sector activity unexpectedly quickened in August as a three-year slump in manufacturing neared an end despite Europe’s deal on higher US trade levies.

S&P Global’s Composite Purchasing Managers’ Index for Europe’s largest economy rose to 50.9 — further above the 50 threshold separating expansion from contraction, data Thursday showed. Analysts had expected a slight slowdown to 50.2.

Manufacturing saw a particularly strong increase to 49.9, surpassing expectations and bringing the sector to the brink of exiting contractionary territory for the first time since June 2022.

“Germany’s economy has been growing throughout the summer so far, and the pace ...