Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for Germany on Tuesday. Germany's preliminary manufacturing PMI fell to 50.4 in March from 50.5 in February, missing forecasts of a rise to 50.8.
The fall in the manufacturing PMI was driven by a weaker increase in new export business.
Germany's preliminary services PMI was up to 55.5 in March from 55.3 in February. Analysts had expected index to decrease to 55.0.
Output charges climbed in the services sector.
"It looks as if momentum in the German economy will remain sluggish in the months ahead, as slowing new order growth was accompanied by the weakest increase in backlogs of work since the summer of last year. Furthermore, there are signs that subdued demand is now also affecting the labour market, as the rate of job creation eased to a near one-year low," Markit's economist Oliver Kolodseike noted.