FX.co ★ Eurozone Private Sector Output Revised Lower

The HCOB Flash Eurozone Composite PMI slightly declined to 51.3 in January 2026, down from 51.5 in the prior month, following a revision and falling short of the initial market forecast of 51.8. Despite this decrease, marking the index's lowest point in four months, it still indicated 13 consecutive months of growth in the Eurozone's private sector output. This expansion was bolstered by robust demand in the services sector, reflected in a reading of 51.6 compared to 52.4 in December 2025, and a notable recovery in manufacturing, which rose to 50.5 from 48.9. New orders continued their upward trend for the sixth month in a row, albeit at a significantly slower pace, constrained primarily by a decrease in export orders. Even with the rise in production and new business, companies slightly reduced their employment levels, primarily due to hiring cuts in Germany. In terms of pricing, input cost inflation surged to near its highest point in almost a year, leading output prices to climb to their peak since April 2024. Looking ahead, business confidence reached a 20-month high, fueled by increased optimism among manufacturers.