Euro zone business activity stuck in a rut, PMI shows

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Euro zone business activity stuck in a rut, PMI shows

^{Published on 2025-02-21 12:40:47 - MSN}

Euro zone business activity saw very tepid growth in February as demand fell at a faster pace and an expansion in services barely offset a long-running decline in manufacturing, a survey showed. HCOB's preliminary composite euro zone Purchasing Managers' Index,

The Eurozone's business activity has stagnated, with the HCOB Flash Eurozone Composite PMI Output Index remaining unchanged at 52.3 in June, indicating a slight expansion but still signaling economic challenges. Manufacturing continues to contract, with the PMI at 45.6, while the services sector shows growth, albeit at a reduced pace, with a PMI of 53.2. Despite the services sector's growth, the overall economic momentum is weak, with new business growth slowing down and employment growth being the weakest in four months. Inflation pressures persist, with input prices rising at the fastest rate in a year, and selling prices also increasing, particularly in services. This persistent inflation, coupled with a lack of significant economic growth, suggests that the European Central Bank might consider further rate hikes to manage inflation, despite the risk of stifling economic recovery.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/euro-zone-business-activity-stuck-in-a-rut-pmi-shows/ar-AA1zvnKS ]

N@N

Euro zone business activity stuck in a rut, PMI shows