Eurozone business activity expands for thirteenth month as job losses and price pressures rise
The Eurozone composite PMI held at 51.5 in January, marking 13 months of growth despite missing forecasts. Rising prices and job losses suggest a fragile recovery.
Insights:
The Eurozone 
EUeconomy continued its modest expansion in January 2026, though business activity lost some momentum compared to analyst expectations. According to the latest HCOB Flash Eurozone Composite PMI survey compiled by S&P Global, the index held steady at 51.5. While this marks the 13th consecutive month of growth above the 50.0 threshold, the result fell short of the 51.8 forecast predicted by a Reuters poll of economists. This resilience in the broader bloc provided some support for the Euro to US Dollar and regional indices like the Euro Stoxx 50 , even as internal data points to emerging cracks in the labor market and trade.
EUeconomy continued its modest expansion in January 2026, though business activity lost some momentum compared to analyst expectations. According to the latest HCOB Flash Eurozone Composite PMI survey compiled by S&P Global, the index held steady at 51.5. While this marks the 13th consecutive month of growth above the 50.0 threshold, the result fell short of the 51.8 forecast predicted by a Reuters poll of economists. This resilience in the broader bloc provided some support for the Euro to US Dollar and regional indices like the Euro Stoxx 50 , even as internal data points to emerging cracks in the labor market and trade.Sector-specific data revealed a slowdown in the dominant services sector, where the PMI slowed to 51.9 from December’s 52.4, underperforming the Reuters poll prediction of 52.6. Meanwhile, manufacturing activity in the Eurozonecontracted again, although the pace of the downturn slowed relative to previous months. The overall demand environment showed signs of cooling as new orders rose at their weakest rate since last September. Particularly concerning for exporters was the fact that new export business contracted at the quickest pace in four months, highlighting the difficulties of navigating global trade tensions.
