Eurozone business activity expanded at its fastest pace in three months in February, according to the latest flash PMI survey from HCOB and S&P Global.
The headline Composite PMI rose to 51.9 from 51.3 in January, remaining above the 50.0 threshold that signals growth for the fourteenth consecutive month. The improvement was driven mainly by manufacturing, where output increased at the strongest rate since August last year. The manufacturing PMI climbed to 50.8, a 44-month high, returning to expansion territory for the first time in six months. Services activity also grew, though at a more moderate pace.
Germany recorded a solid and faster rise in business activity, while France saw broadly stable output. Growth across the rest of the eurozone continued but eased slightly.
New order growth remained modest overall. Manufacturing new orders increased for the first time in six months, but services demand softened and export orders declined again.
Employment fell marginally for a second straight month, as manufacturers cut staff and services hiring stalled. Input cost inflation accelerated to a near three-year high, particularly in manufacturing, while selling price increases softened slightly. Business confidence eased but remained close to a two-year high.