BREAKING: better services PMI data from Europe 📌

Eurozone Countries PMI Data for January:

• Spain Services PMI: actual 52.1; forecast 52.2; previous 51.5;
• Italy Services PMI: actual 51.2; forecast 50.7; previous 49.8;
• Italy Composite PMI: actual 50.7; previous 48.6;
• France Services PMI: actual 45.4; forecast 45.0; previous 45.7;
• France Composite PMI: actual 44.6; forecast 44.2; previous 44.8;
• Germany Composite PMI: actual 47.0; forecast 47.1; previous 47.4;
• Germany Services PMI: actual 47.7; forecast 47.6; previous 49.3;
• Eurozone Services PMI: actual 48.4; forecast 48.4; previous 48.8;
• Eurozone Composite PMI: actual 47.9; forecast 47.9; previous 47.6;

The Eurozone economy continues to contract at the beginning of the year, with overall business activity and new orders softening, yet growth expectations have strengthened in January. A key observation is the persistent and stubborn inflation, posing challenges to the European Central Bank's (ECB) ability to lower high interest rates. Interestingly, there is a difference in the eurozone's service sector performance, with southern European countries like Italy and Spain showing relative resilience, partially offsetting declines in Germany and France. As a result, the PMI for services only marginally dipped to 48.4, close to the expansion threshold.