Eco Pulse

Eurozone: Growth that bends but doesn’t break


In January 2023, according to S&P Global PMI data, the business climate continued to improve for the third month in a row, bringing the composite index just above the 50-point expansion mark for the first time since June 2022. This recovery applies to both the manufacturing sector and services, and it is good news. We regard it as a sign of relief following over-pessimism at the end of 2022 fuelled by fears about energy supply and soaring prices. A relapse cannot be ruled out.

The European Commission’s economic sentiment indicator also saw its third consecutive rise in January, driven primarily by the upturn in consumer confidence – which according to early estimates continued in February for the fifth month in a row – and related sectors (retail and services), with consumers less worried about prices and unemployment.