The HCOB Flash Eurozone Composite PMI was at 51.5 in January of 2026, remaining unchanged from the previous month and slightly below market expectations of 51.8 to reflect a momentary stabilization in private-sector activity growth in the currency bloc. The growth was supported by the services sector (51.9 vs 52.4 in December 2024) despite its slowdown, while manufacturing production returned to growth (50.2 vs 48.9). New orders at the aggregate level rose for a sixth month, although at the lowest magnitude in four months with restriction from a fall in export orders. Despite growth in output and new business, firms cut back on their employment levels at a marginal pace, mainly due to lower employment in Germany. On the price front, input cost inflation rose to a near one-year high, driving output charges to accelerate to its highest since April 2024. Looking forward, business sentiment rose to a 20-month high on greater optimism or manufacturers.

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