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23 Jan 2015
Eurozone private sector activity hits 5-month high in January
FXStreet (Mumbai) - The private sector activity in the Eurozone rose to a five-month high in January, supported by manufacturing activity rising to a six-month high and service activity rising to a three-month high.
The Eurozone composite PMI in January rose to 52.2 from a final reading of 51.4 in December, and beating the expected print of 51.7. The manufacturing index rose to 51.00 from the final reading of 50.6 in December. Meanwhile, services index rose to 52.3 from the December’s 51.6 reading.
As per Chris Williamson, Chief Economist at Markit, “The Eurozone enjoyed a positive start to 2015, with the PMI survey signalling a strengthening in the pace of economic growth to the fastest for five months. The rate of expansion remains worryingly weak. The additional stimulus in the form of full scale quantitative easing by the ECB should help to underpin a further improvement in confidence among households and businesses.”
On falling prices, he said, “The price falls will be a boon to households, but will inevitably fuel growing concerns about the threat of deflation. However, it seems that lower prices are resulting in higher consumer spending, rather than encouraging households to defer purchases in the hope of lower prices in the future.”
The Eurozone composite PMI in January rose to 52.2 from a final reading of 51.4 in December, and beating the expected print of 51.7. The manufacturing index rose to 51.00 from the final reading of 50.6 in December. Meanwhile, services index rose to 52.3 from the December’s 51.6 reading.
As per Chris Williamson, Chief Economist at Markit, “The Eurozone enjoyed a positive start to 2015, with the PMI survey signalling a strengthening in the pace of economic growth to the fastest for five months. The rate of expansion remains worryingly weak. The additional stimulus in the form of full scale quantitative easing by the ECB should help to underpin a further improvement in confidence among households and businesses.”
On falling prices, he said, “The price falls will be a boon to households, but will inevitably fuel growing concerns about the threat of deflation. However, it seems that lower prices are resulting in higher consumer spending, rather than encouraging households to defer purchases in the hope of lower prices in the future.”