According to a widely accepted indicator of manufacturing activity, the German manufacturing sector has contracted during the month of November, recording ninth straight month of fall as the new orders continue to fall in the Europe's leading economy.

The Markit's Purchasing Managers' Index (PMI) for the German manufacturing sector was recorded at 46.8 in November, which is higher than 46.0 recorded in the previous month but is lower than the mark of 50. On the index, any rating above 50 means expansion while that below 50 means contraction. The index measures overall manufacturing activity in the country.

"November's survey highlights that the German manufacturing sector remains on a downward tilt, but there were some encouraging signs lurking behind the headline PMI number," said Tim Moore, a senior economist at Markit.

There are positive indications that the economy might be beginning to recover as the new order volumes fell at its slowest pace in since March while the total output also fell by its lowest rate during the eight month period. Experts say that the German economy showed signs of being unaffected by the Eurozone debt crisis but the prolonged crisis might be beginning to impact the growth in Germany.