The euro area's private sector returned to growth in January, according to a preliminary report by S&P Global on Friday. The composite Purchasing Managers' Index (PMI) went just over the no-change mark, landing at 50.2, reaching a five-month high and exceeding forecasts. The service PMI fell by 0.2 points from December to 51.4, while the manufacturing indicator added a point and stood at 46.1, the highest reading in eight months.
The service sector recorded an increase in output in January, while manufacturing production continued to fall, although at the weakest pace since May 2024. New orders also grew in services and dropped in manufacturing, especially exports. Employment decreased for the sixth consecutive month, but only marginally. However, the report found the sharpest increase in input costs since April 2023, particularly in services.
