This marks the first expansion in private sector activity across the Eurozone since August 2024, according to a flash estimate. The growth was driven entirely by the services sector, which recorded a slight decline to 51.4 from 51.6 in December 2024, while the manufacturing sector saw a notable contraction (46.1 vs. 45.1), although it performed better than expected. At the national level, Germany led the rebound, while the decline in France's activity eased.
New orders contract
Despite this, new orders contracted for the eighth consecutive month, although the decline was the slowest in five months, as weak demand in manufacturing continued to weigh on other sectors. As a result, staffing levels decreased, even as work backlogs were reduced. On the price side, input costs rose at the fastest rate in nearly two years, pushing output inflation to a five-month high.
