The manufacturing PMI came in at 46.7 in November versus 45.0 expected. The services PMI rose to 46.4 versus 46.2 expected as price pressures retreated from recent highs.
The benchmark DAX was down 37 points, or 0.3 percent, at 14,385 after rising 0.3 percent the previous day.
Investors eyed minutes from the Federal Reserve's November policy meeting due later in the day for any indications that the pace of rate hikes may slow.
The euro rose against a basket of currencies in European trade, while bond yields edged up slightly after the Reserve Bank of New Zealand delivered its biggest ever interest rate hike at 75 basis points and warned of economic slowdown.