04-Mar-2026 14:53

Eurozone business activity gathered pace in February, supported by stronger demand for goods and services, according to the latest HCOB PMI survey. The improvement marked the 14th straight month of expansion across the private sector, with companies expressing their strongest optimism about the year ahead since May 2024.

The HCOB Eurozone Composite PMI Output Index rose to 51.9 in February, up from 51.3 in January, reaching a three-month high. Any reading above 50 signals growth. The latest figure points to a faster rate of expansion, driven by improved performance in both manufacturing and services.

Among major eurozone economies, growth was broad-based. Germany led the upturn with its fastest expansion in four months. Ireland and Italy also recorded solid growth, while Spain saw a slower pace of increase. France was the only country to show near-stagnation during the month.

Higher activity levels were supported by a modest but stronger rise in new orders, extending the current period of sales growth to seven months. The increase was mainly driven by domestic demand, as export orders declined slightly. Output growth was also supported by companies working through existing backlogs, although outstanding business fell again, indicating some spare capacity in the system.

Employment levels across the eurozone were broadly unchanged in February. While service providers continued to add staff, hiring growth slowed to a five-month low amid slightly weaker confidence.

The HCOB Eurozone Services PMI Business Activity Index edged up to 51.9 from 51.6 in January, signaling steady but moderate growth in the sector. Services demand improved overall, although new export business continued to decline.

Cost pressures intensified in February, with input prices rising at the fastest rate in nearly three years. Although output price inflation eased slightly, it remained elevated. Despite rising costs, firms remain optimistic about growth prospects over the coming year.

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