The Eurozone Composite PMI Output Index, which measures the services and the manufacturing business activity in the region, came in at 47.9 in January, increasing by 0.3 index points from the month prior, and reaching a 6-month high, S&P Global and Hamburg Commercial Bank's (HCOB) preliminary report showed on Wednesday.
The Services PMI Activity Index reached a 3-month low in December, dropping by 0.4 index points from December to stand at 48.4 and registering the slowest rate in six months. On the other hand, the Manufacturing PMI Index rose from the previous month at 46.6 and touched a 9-month high. Companies reported that the interruptions to shipping in the Red Sea caused supply chains to lengthen for the first time in a year.
"The commencement of the year brings positive tidings for the Eurozone as manufacturing experiences a widespread easing of the downward trajectory witnessed in the past year. This positive shift is evident across key indicators such as output, employment, and new orders," HCOB Chief Economist Dr. Cyrus de la Rubia noted.
