The eurozone economy is mired in ‘near stagnation’, a closely watched survey by the company IHS Markit said on Friday, despite a positive start to the year for big hitters Germany and France.
The company said that its composite eurozone PMI, a key business indicator, wallowed at 50.9 points in January, unchanged from the previous month. A reading above 50 points to an expansion.
‘While the year may have changed, the performance of the eurozone economy was a familiar one in January,’ said Andrew Harker of IHS Markit.
There were positive notes, with the service sector still expanding, albeit at a slower pace than in December, and manufacturing stabilising after a downturn.
Growth continued in two biggest economies, Germany and France, but this was offset by the rest of the 19-member single currency zone.
‘Weakness was evident outside the “big two”, with new orders unchanged and growth of business activity slowing to near-stagnation,’ Harker said.
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