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The eurozone’s private sector returned to growth, marginally, last month, a new survey shows.
S&P Global’s monthly poll of purchasing managers across the euro area has found that the region’s economy was able to eke out growth in January, for the first time since August.
“The slow pace of growth in the services sector, which was evident almost all of last year, continued at the start of 2025. Putting it more positively, growth at service companies played a crucial role in keeping the eurozone economy in expansion over the past year.
Sluggish, but slightly accelerating growth in new orders and employment gives hope that this sector will gain a bit more momentum in the first quarter of this year.
Demand growth has subsided in line with a tight monetary stance, and the positive output gap in the economy is narrowing. Housing market activity has eased, and house price inflation has lost pace. There are signs that economic activity is stronger than preliminary national accounts figures imply, however, and wage costs continue to rise.
Although inflation has eased and inflation expectations have fallen, inflation pressures remain, which calls for a continued tight monetary stance and caution regarding decisions going forward. This is compounded by elevated global economic uncertainty.
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© Photograph: Go Nakamura/Reuters
© Photograph: Go Nakamura/Reuters
