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Euro Zone Private Sector Output Falls to 5-1/2-Year Low

Published 01/24/2019, 04:03 AM
© Reuters.

Investing.com - The euro zone's economy lost momentum again in January, according to survey data released on Thursday, as the region's economy struggles to cope with Brexit worries, global trade wars and the protests in France.

Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, tumbled to a 66-month low of 50.7 this month. That was down from 51.1 in December.

Economists had forecast a reading of 51.4.

The flash services purchasing managers’ index declined to a 65-month low of 50.8 this month from 51.2 in December. That was below expectations for a reading of 51.5.

The preliminary euro zone manufacturing purchasing managers’ index dipped to a 50-month low of 50.5 this month from a final reading of 51.4. Analysts had expected the index to slip to 51.5.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

Commenting on the report, Chris Williamson, Chief Economist at Markit said that, " The disappointing survey data indicate that GDP is rising at a quarterly rate of just 0.1%."

"Both the manufacturing and service sectors are close to stagnation, highlighting the broad-based nature of the current slowdown," he added.

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