Eurozone private sector activity finally broke its contractionary streak, expanding for the first time since August 2024.
Eurozone private sector returns to growth
The HCOB Eurozone Composite PMI climbed to 50.2 in January 2025, confirming the preliminary estimate and surpassing market expectations of 49.7. This positive turnaround was fueled by a second consecutive month of growth in the services sector (although at a slightly slower pace, 51.3 compared to 51.6 in December) and a notable easing of the manufacturing sector's decline (46.6, up from 45.1). While new business inflows continued to shrink for the eighth straight month, largely due to weaker export orders, overall output managed to expand thanks to a drawdown of backlogged work.
Eurozone jobs stable, prices rise, businesses hopeful
Employment levels saw only a marginal decrease. On the price front, input costs surged to a 21-month peak, consequently pushing output charges higher. Despite these mixed signals, businesses remain optimistic about future prospects.
