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Entrepreneurs in the eurozone are entering the 2025 year with improving sentiment. Experts detected a slight upturn in the eurozone’s business climate in early 2025. However, in the latest business activity report, the growth in the composite PMI in January was mainly driven by stable activity in the services sector. Besides, analysts observed a slight easing of the prolonged downturn in the EU’s manufacturing sector.
In the first month of 2025, the preliminary composite PMI for the eurozone, compiled by S&P Global, rose to 50.2, barely surpassing the 50-point threshold that separates growth from contraction. For comparison, the PMI was recorded at 49.6 points in December 2024. The January reading also slightly exceeded analysts’ forecast of 49.7 points.
The index measuring the service sector—the dominant one in the eurozone—declined marginally in January to 51.4, down from 51.6 a month ago. Despite this minor dip, the services PMI remained above the breakeven point, though it fell just short of the estimated 51.5 points.
The new orders index, which reflects demand growth within the EU, climbed to 50.7 from the previous 50.2. However, experts believe further significant growth is unlikely.
The long-term downturn in the eurozone’s manufacturing activity, which began in mid-2022, showed signs of easing. The core PMI increased to 46.1, up from 45.1 in December, exceeding the projected 45.3 points. This data brings a glimmer of hope to market participants.*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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