Business activity in the eurozone accelerated faster than expected in February, with the manufacturing sector returning to growth for the first time since October, according to preliminary data from a survey by “Hamburg Commercial Bank“ (HCOB), compiled and published by “S&P Global“ and cited by Reuters, BTA reported.
The composite purchasing managers' index (PMI), reporting business activity in the eurozone, rose to 51.9 points in February from 51.3 points in January, above the forecast of analysts polled by Reuters for 51.5 points. A reading above 50 indicates expansion, while a reading below indicates contraction.
The manufacturing PMI rose to 50.8 from 49.5 a month earlier. Production also rose, with the corresponding sub-index - a component of the composite index - rising to a six-month high of 52.1 from 50.5 in January. The improvement was supported by a recovery in demand, with the index for new orders in manufacturing rising to 50.9 from 49.2.
In Germany, Europe's largest economy, business activity hit a four-month high. The composite index, compiled by the “Hamburg Commercial Bank“ and published by „S&P Global“, rose to 53.1 points in February from 52.1 points in January, above expectations for 52.3 points. Growth was supported by an acceleration in the services sector and the first expansion of manufacturing in more than three and a half years.
In France, however, the private sector remains stagnant. The services index compiled by „S&p Global“ rose to 49.6 points in February - a two-month high, but remained below the 50-point threshold for a second consecutive month, which signals a contraction in activity.
„Preliminary indices for February support the view that economic activity in the euro area is growing at a reasonable pace, led by the recovery in Germany,“ commented Andrew Cunningham of „Capital Economics“ (Capital Economics).