Eurozone February economic growth accelerates, demand strengthens

Investing.com – Eurozone economic growth accelerates in February. HCOB Eurozone Composite PMI Output Index rises from 51.3 in January to 51.9, reaching a three-month high.

Based on survey data collected between February 9 and 24, this expansion extends the private sector growth phase to 14 months.

The acceleration is driven by faster growth in demand for goods and services in the region. Compared to January, manufacturing output and services output both grew at a quicker pace.

HCOB Eurozone Services PMI Business Activity Index increased from 51.6 to 51.9, reaching a two-month high.

New orders in February grew at a faster rate, marking the seventh consecutive month of improved sales. Growth was driven by domestic orders, while new export business slightly contracted.

The pace of business activity expansion outpaced total sales, indicating that companies are also dealing with backlogs, although the decline in unfinished work was smaller and the slowest since October.

Employment in the Eurozone private sector remained nearly unchanged for the second consecutive month, with no job growth recorded.

Among the five Eurozone countries tracked, Germany led the growth with a composite PMI of 53.2, the fastest increase in four months. Ireland recorded 52.5, Italy reached 52.1, and Spain registered 51.5. France’s economy stagnated at 49.9.

Business confidence strengthened, with growth expectations reaching the highest level since May 2024. Manufacturers showed particular optimism, reaching a four-year high in February.

Input costs rose at the fastest pace since April 2023, hitting a 34-month high. Output prices increased at the second-fastest rate in a year, although inflation slowed slightly compared to January.

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