Eurozone economic growth picked up pace in February, with the HCOB Eurozone Composite PMI Output Index rising to 51.9 from 51.3 in January, marking a three-month high.
The expansion extended the private sector’s growth phase to 14 months, according to survey data collected between February 9-24.
The acceleration was driven by faster increases in demand for goods and services across the region. Both manufacturing production and services output levels rose at quicker rates compared to January.
The HCOB Eurozone Services PMI Business Activity Index climbed to 51.9 from 51.6, reaching a two-month high.
New orders increased at a faster pace in February, marking the seventh consecutive month of improving sales. The growth came from domestic order books, while new export business contracted marginally.
The expansion in business activity outpaced total sales, suggesting companies also worked through backlogged orders, though the reduction in outstanding work was marginal and the slowest since October.
Employment across the eurozone private sector remained virtually unchanged for the second consecutive month, with no job creation recorded.
Among the five eurozone countries tracked, Germany led growth with a Composite PMI of 53.2, its quickest upturn in four months. Ireland posted 52.5, Italy reached 52.1, and Spain recorded 51.5. France’s economy stagnated at 49.9.
Business confidence strengthened, with growth expectations reaching their highest level since May 2024. Manufacturers showed particular optimism, hitting a four-year high in February.
Input costs rose at their sharpest rate since April 2023, marking a 34-month high. Output charges increased at the second-steepest rate in a year, though the pace of inflation eased slightly from January.
Source: Investing