The pace of German factory activity rose at near-record levels in November as new orders, exports and employment returned to peaks seen in 2010-11.
The headline IHS Markit manufacturing purchasing manager index rose to 62.5 in November, up from 60.6 in October. It was the second-highest reading since the survey began in April 1996 - exceeded only by the 62.7 seen in February 2011.
A figure above the benchmark 50 level indicates growth - the further above this level, the stronger the rate of implied growth.
Surveys of procurement executives indicated production levels rose by the strongest rate since April 2011, underpinned by growth in demand for German goods, with new orders and exports rising at their fastest rates since March 2010, and the second fastest rate on record.
Despite rising production levels, the extent of new order growth saw backlogs rise to show one of the biggest increases in outstanding business since 2002. As a result, manufacturers took on new staff at a pace bettered only once in the data series' history.
Inflation pressures build
As in other PMI surveys across Europe on Friday, German manufacturers saw increases in raw materials prices, with the rate of cost inflation at its highest since April 2011.
Phil Smith, economist at IHS Markit, said: "New orders, exports and employment all rose at rates close to the fastest ever recorded by the survey, to underline what is an extraordinary spell for goods producers and the labour market alike.
“The biggest challenges facing manufacturers are on the supply side. At these current rates of growth the sector runs the risk of overheating, and this probably goes some way to explaining the moderation in manufacturers’ future growth expectations to the lowest in almost a year.”
On foreign exchanges, the euro was higher, gaining 0.24% to $1.1932 against the dollar. The pound fell 0.34% against the euro to €1.1326.
Stock across Europe were lower, however, and Germany's bench DAX index fell 0.92% to 12,905.