BERLIN, Oct 5 (Reuters) - Swelling new orders helped Germany's private sector grow for the second month in a row in September although at a slightly slower pace than in August, a key survey showed on Monday.
The headline composite figure combining the manufacturing and service sectors from the Markit purchasing managers' index (PMI) fell to 52.4 in September from 54.0 in August, but remaining above the key 50 mark separating contraction from expansion.
The PMI figures chime with recent data suggesting that the worst may be over for the German economy.
A rise in German gross domestic product in the second quarter brought an end to the country's deepest recession since World War Two and has boosted hopes of recovery in the broader euro zone.
"September PMI data showed that the rebound in the German economy remained on track, led by the strongest growth of new business for seventeen months," said Markit economist Tim Moore.
"Substantial price discounting supported sales in September, reflecting tough competition for new work," he added.
The composite PMI new business sub-index rose to 52.5 from 51.6.
The headline services PMI, tracking businesses ranging from banks to bookshops, fell to 52.1 from 53.8 in August but still pointed towards growth. The services PMI's business expectations sub-index fell slightly to 61.4 but held well above the key 50 mark for the fifth month running.
A final manufacturing PMI measure, released last week, showed that the sector came close to returning to growth in September on a jump in output and new orders.
Deputy Finance Minister Joerg Asmussen said last week that German economic growth likely accelerated in the July-September period compared with the previous quarter.
Economists say however that the recovery in Germany is tentative and unemployment could yet rise and dampen private consumption.
The final PMI data for the services sector showed employment numbers dropping in September, whereas the preliminary flash data had shown them growing. Markit said companies attributed lower staffing levels to falling workloads and efforts to cut costs.
The employment figures for the composite PMI index were also revised downwards in September, and compared negatively with those from August. (Reporting by Sarah Marsh; Editing by Andy Bruce)