Macro February 05, 2019 / 09:24 am UTC

Eurozone Jan Flash Composite PMI at 51, Weakest Since July 2013

By Lars Lundqvist

The final Eurozone January services PMI has been revised a little higher to 51.2 from the flash estimate of 50.8 and is therefore unchanged from the December outcome. The composite survey has also been revised higher to 51.0 (flash 50.7), but is still at its lowest level in more than five and a half years and reflects weak economic activity at the turn of the year.

This outcome follows an upward revision in the French composite to 48.2 (flash 47.9), while the German composite was unrevised at 52.1. Italy was also very weak with the composite falling to 48.8, a 62-month low.

Input costs rose at the weakest rate in nearly a year-and-a-half, although Markit noted it was still at strong levels. Falling oil prices weighed on prices in the manufacturing sector but increasing wage pressures drove operating expenses up in the service sector. Output charges rose in January at the strongest rate in three months.

Just as seen in the manufacturing survey on Friday, business confidence improved marginally but remains subdued as trade tension, Brexit and other political risks are weighing on sentiment.

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