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- Eurozone services PMI unexpectedly dropped in January
Eurozone services PMI unexpectedly dropped in January
According to the report from IHS Markit, flash PMI data for January indicated that the eurozone economy failed to pick up growth momentum at the start of 2020. Business activity increased at the same slight pace as was seen in the final month of 2019 as the rate of expansion in new orders remained muted. Underlying data showed that growth of services activity eased slightly, while the manufacturing sector moved closer to stabilisation. Combined growth of the 'big-2' eurozone economies picked up, but this was offset by near-stagnation across the rest of the single-currency area.
The 'flash' Eurozone Composite PMI was unchanged at 50.9 in January, signalling a further muted increase in activity across the euro area economy. The rate of expansion has remained broadly stable since the start of the final quarter of 2019, running at the weakest for around six-and-a half years. The overall expansion in business activity was again centred on the service sector (Flash Eurozone Services PMI at 52.2 (52.8 in December). 2-month low). That said, services activity rose at a slightly weaker pace than in December. Meanwhile, manufacturing production remained in contraction, but the rate of decline eased to the softest in five months (Flash Eurozone Manufacturing PMI at 47.8 (46.3 in December). 9-month high).
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