Eurozone: Private Sector Growth Rises Again in January

07 February 2005

Growth within the Eurozone private manufacturing and services sectors rose for the second month running in January.

According to the latest data compiled by UK-based NTC Research, the Eurozone Composite Output Index rose for the second consecutive month in January, up from 52.5 in December to 53.4. Growth of incoming new business rose at the fastest pace for four months

Overall, the latest reading indicated the strongest pace of growth for three months across the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, Netherlands and Spain) within the twelve nation euro currency area.

Key findings for January are ...

  • New Business
    The index further distanced itself from November's near-stagnation, up from 51.4 in December to 52.8 in January. The latest reading indicated growth of demand for Eurozone services and manufactured goods for the eighteenth straight month.

  • Input Prices and Costs
    The index was unchanged from December's 62.8. However, the index signalled a further steep increase in costs. Although down from October's four-year high of 66.9, the index remained above both its long-run average (56.7) and the 2004 average (61.8).

  • Employment
    A slight decline in employment was recorded for the third consecutive month in January. This index, which has not recorded any noteworthy growth of employment since mid-2001, slipped marginally from 49.7 in December to 49.6.
The data are based on surveys carried out within the main Eurozone economies. Plus the UK, Poland and the Czech Republic for additional European Union data.

The monthly Report on Eurozone features original data from purchasing executives in over 6,000 manufacturing and services companies. For further information click here.

Data sourced from NTC Research; additional content by WARC staff