Eurozone Expansion Holds as Services Cool and Price Pressures Rebuild, With UK Surging and France Contracting

Overview

• Eurozone composite PMI stayed at 51.5 in January, marking a 13th straight month of expansion, according to S&P Global and HCOB.
• Services growth slowed to 51.9 while manufacturing improved to 49.4, leaving industry still in contraction even as factory output edged back to growth.
• Price gauges accelerated, with input costs rising at the fastest pace since February and output prices increasing at the quickest rate in nearly two years.
• Demand remained fragile as new orders grew at the slowest pace since September, export new business fell at the fastest rate in four months, and employment declined for the first time in months.
• National readings diverged sharply: the UK composite jumped to 53.9, a 21‑month high, as France slipped back into contraction at 48.6, with services weakening and manufacturing holding just above 50.