Eurozone business activity marches to high of over 2 1/2 years

|By:, SA News Editor

Eurozone flash manufacturing PMI has risen to a 32-month high of 53.9 in January from 52.7 in December and topped consensus of 53.

Services have increased to 51.9 from 51 and vs 51.4.

Composite output has climbed to a 31-month high of 53.2 from 52.1 and vs 52.4.

Manufacturing output has increased to 56.7 from 54.9.

"The upturn in the PMI puts the region on course for a 0.4-0.5% expansion of GDP in the first quarter," Markit says.

“However, while gathering pace, the upturn remains fragile. Companies cut employment again, and selling prices continued to fall amid still-weak demand. Deflationary forces are clearly a concern in many countries," Markit adds.

The euro is +0.6% at $1.3632, having started to rise after the release of French PMI data earlier. (PR)