FX.co ★ Eurozone Services Activity Improves

The HCOB Eurozone Services PMI edged up to 51.9 in February 2026 from 51.6 in January, slightly above the flash estimate of 51.8 and in line with market expectations. New business in the sector grew at a faster rate, though the increase was driven entirely by domestic demand, as export orders continued to decline, extending a downtrend that began in June 2023.

Service providers again reduced backlogs of work to support current activity, but the pace of depletion slowed to its weakest in three months. At the same time, firms maintained net hiring, lengthening the current run of job creation to five years.

On the price front, input cost inflation remained unchanged at the prior month’s 11‑month high, while the rate of increase in output charges eased. Even so, the stronger flow of new orders was sufficient to boost business confidence regarding activity over the next 12 months.