Business News Asia
According to preliminary surveys from S&P Global, Eurozone business activity turned unexpectedly into modest growth in January, indicating that the Eurozone economic downturn may not be as severe as expected and the Eurozone could avoid a recession.
The Purchasing Manager’s Index (PMI), which includes the Eurozone’s manufacturing and services sectors, rose to 50.2 in January from 49.3 in December. This is the first time the combined Eurozone January manufacturing and services PMI has been above 50 since June and is above analysts’ expectations of 49.8. An index above 50 indicates that the sector is expanding.
The Eurozone’s services PMI expanded to 50.7 in January, its highest in 6 months, from 49.8 in December. On the other hand, the manufacturing PMI remained in contraction at 48.8 for the month of January from 47.8 in December.
The Purchasing Managers’ Index (PMI) includes the manufacturing and service sectors of Germany rose to 49.7 in January from 49.0 in December. Germany’s manufacturing PMI dropped slightly to 47.0 in January from the final figure of 47.1 in December, while the services PMI rose to 50.4 in January from 49.2 in December.
Overall, the report from S&P Global suggests that the Eurozone economy is showing signs of improvement and that businesses are becoming more optimistic about their future.