Eurozone Private Sector Output Revised Lower

The HCOB Flash Eurozone Composite PMI inched lower to 51.3 in January of 2026 from the 51.5 in the previous month, revised downwards from 51.5 and under the initial market expectations of 51.8. Despite dropping to a four month low, the result reflected 13 straight months of growth in the Eurozone’s private output. The expansion was supported by higher business for services providers (51.6 vs 52.4 in December 2025) and a rebound for manufacturing (50.5 vs 48.9). New orders at the aggregate level rose for a sixth month, although at a sharply lower magnitude with restriction from a fall in export orders. Despite growth in output and new business, firms cut back on their employment levels at a marginal pace, mainly due to lower employment in Germany. On the price front, input cost inflation rose to a near one-year high, driving output charges to accelerate to its highest since April 2024. Looking forward, business sentiment rose to a 20-month high on greater optimism or manufacturers.