Eurozone Private Sector Growth Weakest In 4 Months

(RTTNews) - The euro area private sector logged its slowest growth in January due to the weakening of growth in services activity, final data from S&P Global showed on Wednesday.

The final composite output index posted 51.3 in January, the lowest score since last September. The score remained below the initial estimate and the December's level of 51.5.

However, the score above 50.0 indicates that the sector expanded for the thirteenth successive month.

The weakening of overall growth was driven by the service sector, as the fall in services more than offset a fresh expansion in manufacturing output.

The services Purchasing Managers' Index dropped to 51.6 from 52.4 in the previous month. The flash reading was 51.9. The score was above the 50.0 no-change level for an eighth month.

Germany's private sector expanded in January as a renewed upturn in manufacturing output was offset by slower growth in services business activity.

However, the composite output index dropped to 52.1 from 51.3 in December. The flash score was 52.5.

The services PMI posted 52.4, the lowest since September, and down from 52.7 in December and below the flash 53.3.

France's private sector contracted for the first time in three months in January. The final composite index slid to 49.1 from 50.0 in the previous month. The flash reading was 48.6.

The service sector suffered a fresh setback as new business registered its steepest fall in six months. The final services PMI posted 48.4 compared to 50.1 in the previous month. But it was better than the initial estimate of 47.9.

Elsewhere, in Spain, there was a downshift in growth to its slowest since last June. The composite output index fell to 52.9 in January from 55.6 in December.

The HCOB services PMI recorded 53.5 in January, down noticeably from December's 57.1 and the weakest reading since last August.

Meanwhile, the Italian private sector regained some momentum despite softer growth in new work. The composite output index rose to 51.4 from 50.3 in December.

The services economy continued to lead the increase amid a stronger upturn in activity, while the decline in manufacturing output softened from December.