04-Feb-2026 15:48

The seasonally adjusted HCOB Eurozone Composite PMI Output Index signalled a thirteenth successive monthly increase in private sector output across the single currency bloc at the start of 2026. However, falling from 51.5 in December to 51.3 in January, the figure was again indicative of a weak rate of growth, and one that was also the slowest since last September. This weakening of growth was driven by the service sector, underlying data showed, more than nullifying a fresh expansion in manufacturing output.

The eurozone's private sector economy continued to expand at the beginning of 2026, in line with the trend seen in each month of last year. That said, the upturn slowed, as was also the case in December, signalling a sustained loss of momentum and leaving the overall rate of growth well below its historical average.

January's softer rise in business activity reflected a near flatlining of demand as new orders barely rose on the month, while employment stagnated. Nonetheless, eurozone businesses were more optimistic towards the year-ahead outlook, registering their strongest expectations for activity growth since May 2024. As for price pressures, January survey data indicated a build-up of inflation, with increases in both input costs and output charges accelerating to rates which were in excess of their respective survey averages.

The HCOB Eurozone Services PMI Business Activity Index posted above the 50.0 no-change level for an eighth month on the bounce in January, but fell from 52.4 in December to 51.6. This drop took the index down to a level that was consistent with a modest rate of growth in services output, and one that was the softest since September last year. Demand for eurozone services increased on the month, but the pace of expansion was well below that seen on average throughout the fourth quarter of 2025.

Powered by Commodity Insights