Recovery in Eurozone Private Sector Eases Fear of Recession

Analysis

Image by Shutterstock.com

Eurozone private sector moved into the expansion zone in January for the first time in seven months, raising hopes that the currency bloc would escape a recession, final survey results from S&P Global showed Friday.

At 50.3 in January, the composite output index climbed from 49.3 in December. The flash score was 50.2.

The renewed upturn in the private sector was exclusively fueled by services firms.

Meanwhile, manufacturing activity logged a mild contraction.

The services Purchasing Managers' Index (PMI) advanced to 50.8 in January from 49.8 in December. The reading exceeded the crucial 50.0 mark that separates expansion from contraction for the first time since July 2022.

The S&P survey suggested that the overall economic growth across the currency bloc was constrained by continued weakness in demand. Firms also reported challenging export market conditions. With rising business activity and a fall in new order intakes, companies made inroads into their backlogs. At the same time, the rate of job creation improved to a three-month peak as hiring activity strengthened across manufacturing and service sectors.

Input cost inflation slowed again in January to the weakest since April 2021. Meanwhile, there was a marginal rise in output charge inflation. Further, firms were more optimistic about their future.

Hungary Current Account has EUR 213 mln Deficit in January Debt

Hungary Current Account has EUR 213 mln Deficit in January

Budapest Residents to Weigh in on Rákosrendező Development P... Issues

Budapest Residents to Weigh in on Rákosrendező Development P...

AutoWallis Becomes Importer of Geely Group’s Commercial EV B... Automotive

AutoWallis Becomes Importer of Geely Group’s Commercial EV B...

These Are the Most Sleep-friendly Hotels in Hungary Hotels

These Are the Most Sleep-friendly Hotels in Hungary

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.