The final HCOB Eurozone Services Purchasing Managers’ Index (PMI) for December came in at 51.6, slightly higher than the preliminary estimate of 51.4, marking an expansion in the services sector. Meanwhile, the composite PMI for the euro area was confirmed at 49.6, in line with forecasts but still reflecting a contraction in overall economic activity. The previous month’s composite PMI was 48.3, showing some improvement.
Key PMI Updates Across Europe:
- Spain: Services PMI is forecast to increase to 54.1 in December, up from 53.1 in November.
- Italy: Services PMI is expected to rise to 50.0 from 49.2, indicating a neutral outlook for the sector.
- France: Final composite PMI is estimated to edge up to 46.7, compared to 45.9 in November, still indicating contraction.
- Germany: Composite PMI remains at 47.8, consistent with the flash estimate and an improvement from 47.2 in the previous month.
UK and Eurozone Investor Sentiment:
- The UK Final Services PMI is anticipated at 51.4, aligning with preliminary estimates and higher than 50.8 in November.
- The Eurozone Sentix Investor Confidence Index is expected to decline to -17.7 in January, from -17.5 in December, signaling continued caution among investors.
Germany’s Inflation Outlook:
Later in the day, Germany’s flash inflation data will be published, with economists predicting consumer price inflation to rise to 2.4% in December, compared to 2.2% in November.
These PMI readings, alongside inflation updates, provide critical insights into the economic health of the Eurozone as it navigates challenges amid a slow recovery.
