Eurozone’s Services Business Activity Index was 45.4 in January, down from December’s reading of 46.4, according to IHS Markit press release. The Composite Output Index in the private sector also fell from 49.1 in December to 47.8 in January.
- Services were the main drag on the Eurozone economy as the sector contracted for a fifth successive month and at a sharper rate than December.
- Manufacturing remained resilient as production increased for a seventh successive month despite the growth being the lowest in the current sequence.
- Only Germany recorded a rise in private sector output in January in the Eurozone
- Private sector activity falls were noted in France and Italy while severe weather in Spain worsened the activity already weighed down by coronavirus restrictions.
- There were solid falls in levels of incoming new work for the fourth month in a row.
- Inflationary pressures intensified in January as the input cost pressures accelerated to the sharpest in two years.
- Confidence about the future remained in the positive territory in January with the degree of optimism little changed since the previous month.
European stocks are currently gaining as the Euro loses. DAX is up 0.67%, EURUSD is down 0.17%