Eurozone Economic Output Cools to 10-Month Low

Source: IHS Markit

The eurozone economic growth slowed to a 10-month low in January, dragged by the impact of the COVID-19 omicron variant. EZU is down 2.23%, while VGK is down 1.03% premarket.

• The IHS Markit Eurozone PMI Composite Output Index stood at 52.3 in January, lower than the 53.3 in December. This is the weakest growth since March 2021.
• The decline reflects a moderation in growth among services firms, as manufacturing output grew at a faster pace.
• The fastest growth was recorded in Ireland, followed by Germany, which recorded a four-month low, and France, which saw a nine-month low.
• Italy dropped to a 12-month low of 50.1, while Spain fell to an 11-month low of 47.9, below the 50 threshold that separates expansion from contraction.
• Employment growth accelerated during the month, significantly higher than the historical average on the back of hiring by manufacturers.
• The IHS Markit Eurozone Services Business Activity Index was recorded at 51.1 in January, lower than the 53.3 in the previous month.