The collective index was thus above 50 points for the first time in eight months. Above 50 points, the economic barometer signals growth, below it a contraction. The manufacturing PMI fell to 46.5 from 47.3 in the previous month. Economists had expected a reading of 47.8. The service sector index rose to 51.3 from 50.7 points. The forecast had been 51.0.
“Encouragingly, both industrial production and business activity in the service sector increased,” said S&P Global economist Phil Smith. “However, while the upswing in the service sector was at least partly demand-driven, the increase in production was almost exclusively due to the sharp easing of supply chain bottlenecks. With manufacturing orders still showing a negative trend, the full-year outlook here also remained cautiously optimistic – and it probably needs an upturn in demand to change that.”
S&P Global: Eurozone economic activity at nine-month high
The euro zone-Economy posted the strongest growth in nine months in February, driven in particular by the accelerated uptrend in the services sector. The composite index of private sector manufacturing — manufacturing and services combined — rose to 52.3 points from 50.3 the previous month, S&P Global reported in the initial release. Economists polled by Dow Jones Newswires had predicted a rise to 50.5 points.
Above 50 points, the economic barometer signals growth, below it points to a contraction. The manufacturing purchasing managers’ index fell to 48.5 points from 48.8 in the previous month. Economists had forecast an increase to 49.2 points. The service sector index climbed to 53.0 points from 50.8 in the previous month. Economists had expected a reading of 50.9 points.
At country level, France and Germany returned to growth for the first time since October and June of last year, respectively. France’s composite index rose to 51.6 from 49.1 in January, although growth was limited to the services sector. The German composite index rose to 51.1 points from 49.9, which was due to the second consecutive business growth in service providers and the first expansion of industrial production since May 2022. However, February saw the strongest rise in the other countries covered by the survey.
“The composite index for February is broadly in line with the quarterly GDP growth rate of just under 0.3 percent,” said S&P Global chief economist Chris Williamson. “The recovery was supported by an improved outlook, easing fears of a recession and the first signs that inflation appears to have passed its peak. However, the industry also benefited from the much improved supply situation.”
By Andreas Plecko
FRANKFURT (Dow Jones)
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