Eurozone services sector activity hits seven-month high - PMI

5th Mar 2024 09:14

(Sharecast News) - Business activity in the eurozone's key services sector picked up to a seven-month high in February, according to a survey published on Tuesday.

The HCOB eurozone Services PMI Business Activity Index came in at 50.2 from January's 48.4, while the composite output index rose to 49.2, its best for eight months. A figure below 50 indicates contraction.

"The service sector may be off to a better start in 2024 than anticipated. For the first time in seven months, the sector's activity is expanding instead of shrinking. While the growth rate is fractional, it is complemented by positive developments in other PMI sub-indicators," said Cyrus de la Rubia, chief eat Hamburg Commercial Bank.

"Particularly encouraging is the uptick in new staff recruitment by service providers, surpassing the sluggish growth rates seen in recent months. Moreover, the stability in incoming new business suggests a potential turning point in demand conditions."

"However, amid reports of persistent wage pressures, overall operating costs rose to the strongest extent in 10 months, pushing output price inflation higher."

Reporting by Frank Prenesti for Sharecast.com