Eurozone Growth Cools Down But Remains Steady

Eurozone business activity continued to rise at a steep pace in February, albeit with the rate of expansion cooling from the near 12-year high recorded in January. Price pressures and employment growth also remained elevated, though likewise saw rates of increase ease slightly.

Business optimism about the coming year meanwhile ticked higher.

The headline IHS Markit Eurozone PMI fell from 58.8 in January to 57.5 in February, according to the estimate, which is based on approximately 85% of usual final replies.

The slower growth of business activity reflected an easing in the rate of increase of new orders which, while elevated, slipped to a five-month low.

By country, growth in Germany came in at a three month low, while in France the composite PMI moderated to the weakest for four months.

However, in both cases the PMI readings remained at levels indicative of strong growth, close to recent seven-year highs. Business activity growth meanwhile also slowed across the rest of the eurozone, though still registered the second-largest expansion in nearly 12 years

via Market Flash Eurozone PMI

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