Eurozone activity returns to growth: composite PMI stands at 50.2 in January


CdM: This is what the PMI index data released on Tuesday by S&P Global shows. “Eurozone business activity increased slightly in the first month of 2023, signalling a hesitant return to growth after six consecutive months of decline.”

Specifically, the Flash Eurozone Total Activity Composite PMI Index came in at 50.2 (49.3 in December), registering a seven-month high. This figure indicates “the first – albeit only modest – expansion in business activity since June last year”.

In January, business activity in the services sector increased for the first time since July last year (the services sector business activity index rose from 49.8 to 50.7), while manufacturing output contracted only modestly (the respective index rose from 47.8 to 49.0), registering the smallest decline in industrial production since June 2022.

S&P Global explains that growth was driven by the technology sectors (services and computer equipment) and by the pharmaceutical and healthcare sectors, although industrial services also rebounded and returned to expansionary territory. However, slowdowns also eased in the financial services sector, including notably the real estate sub-sector, and in the basic resources sector, while retail sub-sectors such as tourism and leisure and household goods “showed signs of stabilisation after several months of decline”.

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