Germany's services sector expanded more-than-expected at in October, albeit at a slowest pace in three months, survey data from IHS Markit showed on Tuesday.
The services Purchasing Managers Index, or PMI, fell to 54.7 in October from September's eight-month high of 55.9. The latest reading was the lowest since July, but was above the flash estimate of 53.6.
A PMI score above 50 suggests growth in activity.
The index was above its long-run average and signaled the continuation of a record sequence of growth that began in mid-2013, IHS Markit said.
Strongest rates of growth were seen in financial intermediation and renting & business activities.
The services sector job creation remained one of the quickest in over the past 11 years.
However, concerns over signs of an economic growth slowdown, rising global uncertainties and skill shortages, dragged business confidence to its lowest level in nearly two years.
The composite PMI fell to 53.4 from 55 in September, but was above the flash reading of 52.7. The latest reading was the joint-lowest in over two years.
Manufacturing growth was the slowest in nearly four years during October.
"Given the deteriorating manufacturing performance, there is now greater onus on services to drive the economy, and the moderations in order book growth and business confidence show some worrying signs of vulnerability," IHS Markit economist Phil Smith said.
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