Eurozone private sector growth underwhelms - PMI
By Abigail Townsend
Date: Friday 23 Jan 2026
(Sharecast News) - Economic growth in the Eurozone was sluggish in January, a closely-watched survey of companies showed on Friday.
January's flash HCOB composite PMI Output Index was 51.5, unchanged on December and notionally behind consensus for 51.6. However, it remained in positive territory. A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction.
Within the composite, the services PMI business activity index eased to 51.9 from 52.4. But manufacturing strengthened, with the PMI output index pushing back into positive territory, rising to 50.2 from 48.9, a two-month high.
The manufacturing PMI also improved, up 0.6 points at 49.4.
Sentiment across the Eurozone's private sector companies rallied, with optimism in the outlook hitting a 20-month high.
However, the survey also found employment levels had been scaled back in January, ending a three-month run of jobs growth.
Among individual countries, in Germany - the bloc's biggest economy - the composite PMI output index was 52.5, up from 51.3 and a three-month high, following rises in both the services and manufacturing PMIs.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, cautioned: "The recovery still looks rather feeble.
"Looking ahead, the low growth in new orders is certainly no game changer. Instead, the start of the new year points to more the same in the months to come.
"For the European Central Bank, these results are anything but reassuring. Inflation in the services sector, which the central bank is watching particularly closely, has increased significantly in terms of sales prices."
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