Eurozone Private Sector Expands On Robust Demand

(RTTNews) - Eurozone private sector growth improved in February due to a faster rise in demand for goods and services, final survey data from S&P Global showed Wednesday.

The HCOB final composite output index rose to a three-month high of 51.9 in February, in line with flash estimate, from 51.3 in the previous month.

The index has remained above the threshold 50.0 mark for 14 straight months, signaling growth in the private sector. There was a broad-based acceleration across manufacturing production and services output.

The services Purchasing Managers' Index posted 51.9, up from 51.6 in January. The flash reading was 51.8.

Among big four economies, business activity growth was recorded in all but France, which saw its economy virtually stagnate in February. Germany was the growth engine midway through the opening quarter, posting its quickest upturn in four months.

Solid expansion was recorded in Italy, while Spain reported its softest rise in business activity since May last year.

"Germany could become the driving force of the eurozone in the coming months," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said. "In February, the country took the lead among the four major eurozone countries in terms of economic expansion rate, followed by Italy, Spain, and France," de la Rubia added.

Germany's private sector growth accelerated in February due to faster increases in activity in both the manufacturing and services sectors. The final composite output index rose to a four-month high of 53.2 from 52.1 in January. The initial score was 53.1.

The services PMI climbed to 53.5 in February from 52.4 in January. This was the highest score since last October and was slightly above the flash score of 53.4. France's private sector output stalled in February. The HCOB final composite output index posted 49.9 in February, up from January's 49.1. The reading matched flash estimate. Similarly, the services PMI dropped to 49.6, as initially estimated, from 48.4 in the prior month.

Italy's private sector expanded in February supported by upturn in manufacturing and services. The HCOB composite output index registered 52.1 compared to 51.4 in January. The score signaled the strongest growth in three months. At 52.3 in February, the services PMI dropped slightly from 52.9 in January.

Meanwhile, Spain's private sector grew at the slowest pace since May 2025. The composite PMI slid to 51.5 from 52.9 in January. The services PMI declined to 51.9 in February from 53.5 in the previous month.