BRUSSELS (AFP) – Business activity in the eurozone bounced back in January after a two-month contraction, as the pace of decline eased in the manufacturing sector, a closely watched survey showed yesterday.
The HCOB Flash Eurozone purchasing managers’ index (PMI) published by S&P Global registered a figure of 50.2 for the single-currency area, after 49.6 in December. Any reading above 50 indicates growth, while a figure below 50 shows contraction.
“The kick-off to the new year is mildly encouraging,” said Chief Economist at Hamburg Commercial Bank Cyrus de la Rubia. “The private sector is back in cautious growth mode after two months of shrinking. Germany played a major role in improving the eurozone economy,” de la Rubia said, noting that business activity in the area’s largest economy stabilised at the start of the year after six months of decline.
“In contrast, France’s economy remained in contraction,” he noted. Overall, the improved eurozone dynamic was linked to timid improvements in manufacturing.
