The seasonally adjusted HCOB Flash Eurozone Composite PMI Output Index, based on approximately 85% of usual survey responses and compiled by S&P Global, was unchanged at 50.2 in February.

After signaling a rise in output for the first time in five months during January, the latest data pointed to a sustained but marginal expansion in activity.

Where growth was recorded, the main source was again the euro area's service sector. Services activity increased for the third consecutive month in February, but only modestly and to the weakest extent in this sequence.

Manufacturing production, meanwhile, continued to fall, the twenty-third successive month in which this has been the case. That said, the pace of contraction was the weakest since May 2024.

The Eurozone private sector continued to eke out marginal growth of output during February, according to provisional PMI survey data, with the pace of expansion unchanged from that seen at the start of the year.

New orders continued to fall, however, and companies again lowered their staffing levels amid muted demand. Confidence also dipped and was at a threemonth low.

Meanwhile, the pace of input cost inflation quickened to the fastest in almost two years, with output prices rising at a sharper pace as a result.

The picture of marginal growth seen at the euro area level masked marked differences between the different parts of the currency bloc. The Eurozone's largest economy ' Germany ' recorded a second consecutive monthly rise in output, with the pace of expansion quickening to a nine-month high. In contrast, France posted a marked and accelerated reduction in business activity, one that was the most pronounced for almost a year-and-a-half. Meanwhile, the rest of the euro area posted a solid expansion in output.

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