Home » The initial value of the composite PMI in the euro zone rose to 50.2 in January, and the initial value of the manufacturing PMI was below the line of prosperity and decline for seven consecutive months

The initial value of the composite PMI in the euro zone rose to 50.2 in January, and the initial value of the manufacturing PMI was below the line of prosperity and decline for seven consecutive months

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The initial value of the composite PMI in the euro zone rose to 50.2 in January, and the initial value of the manufacturing PMI was below the line of prosperity and decline for seven consecutive months

The euro zone’s private sector economy unexpectedly returned to growth in early 2023, but S&P economists believe difficulties remain.

The just-released PMI showed that the euro zone’s private sector economy unexpectedly returned to growth in early 2023, boosting market hopes for a “soft landing” for the euro zone economy.

On January 24, according to data released by IHS Markit, a subsidiary of S&P Global,The preliminary value of the composite PMI in the euro zone rose to 50.2 in Januarybetter than the expected value of 49.8 and the previous value of 49.3,It is also the first time since June that the indicator is higher than the 50% dividing line between expansion and contraction.

announced togetherThe initial value of the manufacturing PMI in the euro zone in January was 48.5,It was lower than the line of prosperity and contraction for seven consecutive months, lower than the expected value of 48.8, and higher than the previous value of 47.8. It is worth mentioning that,While manufacturing activity in the euro zone continued to shrink, the pace of contraction slowed significantly further.

The initial value of PMI for the service industry in the euro zone in January was 50.7, which was the first time since August last year to exceed the line of expansion and contraction, higher than the expected value of 50.2 and the previous value of 49.8, which indicates that the activity of the service industry has also recovered.

Now, a combination of slowing inflation, a warm winter and improved supply chain and business confidence are boosting optimism about a “soft landing” for the eurozone economy. However, the data is not all positive. Earlier PMI figures for the euro zone’s two largest economies – Germany and France – remained below 50.

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Chris Williamson, chief business economist at S&P Global Market Intelligence, warned that “the region is far from out of the woods” even as a stabilizing economy added to evidence the region could emerge from recession:

“Demand continues to fall — only at a slower pace — and a pickup in selling prices for goods and services will encourage hawks to push for further monetary tightening.”

Williamson added:

“A pick-up in job growth this month and signs of a recent pick-up in price pressures fueled by rising wages have further boosted the case for a rate hike.”

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