Euro zone businesses perform better than expected in February

Euro zone business activity accelerated faster than forecast this month. The HCOB Flash Eurozone Composite PMI, compiled by S&P Global, rose to 51.9 in February from 51.3 in January, marking the 14th consecutive month of expansion. (PMI readings above 50.0 indicate growth in activity with those below reflecting contraction.)

The headline manufacturing PMI jumped to 50.8 from 49.5 while the output index, which feeds into the composite reading, bounced to a six-month high of 52.1 from 50.5. February’s rebound was driven by a resurgence in demand with the factory new orders index climbing to 50.9 from 49.2.

Services activity in the common currency area showed a modest improvement with the PMI nudging up to 51.8 from 51.6.

Britain, outside the euro zone and the European Union, saw businesses extend their early 2026 rebound into a second month, its PMI showed. British retail sales volumes rose in January at the fastest annual pace in nearly four years.

Source: reuters.com