Business activity in the euro zone bounced back to growth in January, according to a survey which suggested the bloc’s economy might again escape a contraction this quarter and that the upturn may accelerate.
S&P Global’s Composite Purchasing Managers’ Index , seen as a good gauge of overall economic health, climbed to a seven-month high of 50.3 last month from 49.3 in December, just ahead of a 50.2 preliminary reading.“A resumption of business output growth, even marginal, is welcome news and suggests that the euro zone could escape a recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
While demand fell again the new business index moved much closer to the break-even point and with firms increasing head count optimism about the year ahead was at its highest since April. The future output index jumped to 60.4 from 55.5.