the Growth of business activity in the Eurozone in January accelerated for the second month running and was the fastest since August last year, according to IHS research company Markit.
the composite index of business activity (Purchasing Managers Index, PMI) of the Eurozone increased from December’s 50.9 to 51.3 points. A preliminary assessment was 50.9 points.
a reading below 50 points reflect reducing activity, a higher activity.
PMI of the services sector in the Eurozone declined from 52.8 to 52.5. Preliminary estimate was 52.2.
while the growth of activity was concentrated in the service sector in the Eurozone manufacturing sector continued to decline.
Consolidated PMI in Germany, the largest economy in the bloc, in January increased from 50.2 to 51.2 points. PMI of the services sector jumped from 52.9 to 54.2 in December, peaking from August 2019.
Consolidated PMI of France, on the contrary, in the past month decreased from 52 to 51.1 points, being at its lowest level since September.
meanwhile, the composite PMI Italy in January rose from 49.3 to 50.4, pointing to a stabilization in activity in the private sector after declining for two consecutive months.
the Latest data showed that new orders in the Eurozone in January rose at the fastest pace in seven months despite weak external demand.
New export orders fell for the 16th consecutive month, although the decline was the most moderate with the end of 2018.
the January data suggest a further moderate increase in employment.
Business confidence in the prospects for the coming year in January reached the highest level since September 2018.
“Despite the fact that growth remains moderate and the study results indicate a quarterly growth rate of slightly less than 0.2%, the manufacturing sector shows positive signs of stabilization after the severe recession observed in the past year, and growth in the services sector remains reassuringly stable, largely thanks to thedue to the improved situation on the labour market,” said IHS chief economist at Markit Chris Williamson.