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- Eurozone growth remains muted amid decline in manufacturing
Eurozone growth remains muted amid decline in manufacturing
According to the report from IHS Markit, although output across the eurozone private sector increased at a slightly faster pace in February, the rate of expansion remained muted. Moreover, the manufacturing sector weighed on overall economic performance, falling into contraction during the month.
The Eurozone Composite PMI posted 51.4 in February, up from 51.0 in January and the highest in three months. Despite quickening from the five-and-a-half year low seen at the start of the year, the rate of expansion remained modest.
Flash Eurozone Services PMI Activity Index at 52.3 (51.2 in January). 3-month high.
Flash Eurozone Manufacturing PMI at 49.2 (50.5 in January). 68-month low.
Overall growth was centred on the service sector where activity also rose at the fastest pace in three months amid an improving picture in Germany and stabilisation in France. On the other hand, euro area manufacturing production decreased for the first time since June 2013. While business activity rose at a faster pace, there remained signs of demand weakness as new orders dipped for the second month running. As IHS Markit Eurozone PMI and GDP with output, the manufacturing sector was the main source of weakness in new business.
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