Business activity in the Eurozone accelerated faster than expected in February. According to preliminary data from the HCOB Flash Eurozone Composite PMI from S&P Global, the composite index rose to 51.9 points, up from 51.3 in January. This indicator has remained above 50.0 for the 14th consecutive month, indicating continued economic expansion in the region.
The most notable improvement was recorded in industry. The manufacturing PMI rose to 50.8 from 49.5, returning to growth territory. The output index, which is included in the composite index, reached a six-month high of 52.1 points, up from 50.5 the previous month. The recovery in February was supported by a rebound in demand: the industrial new orders index rose to 50.9 from 49.2, indicating a resumption of contract inflows.
The services sector in the single-currency countries also showed moderate growth, with the core PMI rising to 51.8 from 51.6. Meanwhile, in the UK, which is not part of the eurozone or the EU, business activity continued to recover for the second month in a row, with retail sales in January growing at the fastest annual rate in almost four years.