Financial News: Eurozone Private Sector Growth Improves

Eurozone Private Sector Growth Improves

(RTTNews) - The euro area private sector growth improved to a three-month high in February, driven by notable expansion in the German manufacturing sector, flash survey results published by S&P Global revealed Friday.

The HCOB flash composite output index registered 51.9 in February, up from 51.3 in January. The score was expected to rise to 51.5.

The index has remained above the 50.0 no-change mark for the fourteenth straight month and pointed to a moderate increase in the private sector. Faster increases in activity were recorded across the manufacturing and services sectors in February.

The services Purchasing Managers' Index climbed to 51.8 from 51.6. At the same time, the manufacturing PMI hit a 44-month high of 50.8 compared to 49.5 in the previous month.

"It might be premature, but this could be the turning point for the manufacturing sector as the headline PMI increased to growth territory," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

"Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag for the economy," de la Rubia added. The survey showed that Germany posted a solid increase in business activity that was the fastest in four months, while France registered broadly no change in output since January.

Germany's private sector growth accelerated to a four-month high in February, underpinned by improved performances in manufacturing and services. The HCOB flash composite output index registered 53.1 in February, up from 52.1 in January. This was the highest score since last October and well above economists' forecast of 52.3.

The flash services PMI hit a four-month high of 53.4, up from 52.4 in the prior month. Economists had forecast the indicator to remain unchanged at 52.4.

At the same time, the manufacturing PMI rose to a 44-month high of 50.7 from 49.1 in January. The reading was seen at 49.6.

Meanwhile, the downturn in the French private sector slowed in February as production output continued to expand. The headline HCOB composite output index climbed to 49.9 from 49.1 in January. The score was expected to rise to 49.7.

The services PMI rose more-than-expected to 49.6 in February from 48.4 in the previous month. The expected reading was 49.1.

The manufacturing PMI posted 49.9, down from 51.2 a month ago. This was below economists' forecast of 50.9. At the same time, the manufacturing output index fell to 51.6 from 52.1 in January.

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