Investing.com — The euro zone business sector started 2025 with a minor return to growth, according to the Purchasing Managers’ Index (PMI) data.
This growth was primarily due to stable services activity in January, accompanied by a slight easing of the prolonged downturn in manufacturing.
The preliminary composite euro zone PMI, compiled by S&P Global, marked an increase to 50.2 in January from 49.6 in December, just surpassing the 50 threshold that separates growth from contraction. This was a slight improvement over a Reuters poll prediction of 49.7.
The index that measures the euro zone’s dominant services industry saw a slight decrease to 51.4 from 51.6. Despite the dip, it remained above the breakeven point and was only marginally below the Reuters poll forecast 51.5.
The new business index, which indicates demand growth, rose to 50.7 from 50.2, suggesting that a significant rebound is unlikely in the near future.
The long-term downturn in manufacturing activity, which started in the middle of 2022, showed signs of easing. The headline PMI for this sector increased to 46.1 from December’s 45.1, surpassing the forecasted rise to 45.3.
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