Markit Economics released construction purchasing managers' index (PMI) for Germany on Thursday. Germany's construction purchasing managers' index (PMI) increased to 55.5 in January from 57.9 in December.
A reading above 50 indicates expansion in the sector.
The index was driven by a rise in new business and employment.
"Germany's construction sector roars back to health at the beginning of the year, with the headline Construction PMI reaching its highest level in nearly five years. House building remained a particularly bright spot in the data, rising at the steepest rate in nine years," an economist at Markit, Oliver Kolodseike, said.