The final data published by HCOB showed that activity in the eurozone private sector rose to a 6-month high in January, but remained in contraction territory. Meanwhile, both output prices and input costs rose at their sharpest rates for eight months.
The Eurozone Composite PMI Output Index, which assesses the change in activity in the manufacturing sector and the service sector, rose in January to 47.9 points, as expected, from 47.6 points in December. The index remains below the 50-point mark, which indicates a reduction in activity in the sector, for the eighth month in a row. A slower contract in factory production led to the weaker fall in overall output levels during January, offsetting a slightly faster determination in services activity (services PMI fell to 48.4 points, as expected, from 48.8 points in December).
The data also showed that new orders declined again in January. Weaker falls in new orders were seen at manufacturers and services companies, leading to the softest overall rate of decline in sales for seven months. Export orders also fell in January, but the rate of decline was the weakest since April 2023. The labor force as a whole remained unchanged in January after declining in November and December. This helped eurozone companies to continue clearing backlogs of work, which fell solidly and for a tenth consecutive month. Meanwhile, euro area businesses’ growth expectations improved yet again in January, and reached a 9-month high.