Eurozone sees 1st economic growth since August ’24

The eurozone economy returned to growth in January for the first time since August 2024, with the HCOB Eurozone Composite PMI rising to 50.2 from 49.6 in December, according to data released by S&P Global. The expansion was marginal, driven by a slower contraction in manufacturing and steady growth in services.

Despite the upturn, new business inflows declined for the eighth consecutive month, and firms relied on clearing backlogged orders to sustain activity. Cost pressures intensified, with input prices rising at the fastest pace since April 2023, prompting companies to increase their selling prices.

Among major economies, Spain remained the strongest performer, while Germany recorded its best monthly result since May. Italy’s economy stagnated, and France saw its fifth consecutive contraction.

Employment in the eurozone neared stabilisation, with job losses in manufacturing offset by hiring in services. Business confidence improved to its highest level since July 2024, though optimism remained below historical trends.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama