Data published by IHS Markit showed that the growth of activity in the eurozone slowed down again in January, which was due to the spread of the Omicron strain and new restrictions.
The composite PMI index - which measures changes in activity in the manufacturing and services sectors - fell to 52.4 in January from 53.3 in December, and reached its lowest level since March 2021.
The growth of activity in the service sector slowed sharply in January and reached the lowest level since April 2021 (the index fell to 51.2 from 53.1 in December) amid an increase in the incidence of COVID-19 and the introduction of new restrictions that negatively affected consumer-oriented enterprises and the hotel business.
Meanwhile, the PMI index in the manufacturing sector rose to 59.0 from 58.0 in December, and reached the highest level since August 2021 amid easing supply problems, which helped to increase production in many firms.
The data also showed that the new orders component recorded the weakest growth since August 2021, while the backlogs of the work component continued to rise in both sectors. Meanwhile, employment growth in the manufacturing sector reached its highest level since July last year, but employment growth in the service sector slowed to its lowest level since May 2021.
IHS Markit also reported that the expected activity component improved slightly in January.