The final data released by S&P Global showed that business activity in the eurozone private sector increased in February, reaching the highest level since June 2022, which was mainly helped by increased activity in the service sector. Business confidence also rose in February, reaching a 12-month high, but remained below the level preceding Russia's invasion of Ukraine.
The Eurozone Composite PMI rose to 52.0 points from 50.3 points in January. The index remains above the level of 50 points, which indicates an expansion of activity, for the second month in a row. Meanwhile, the services PMI rose to 52.7 points from 50.8 points in January, but was slightly below forecasts (53.0 points).
S&P Global said that new orders in the private sector rose slightly in February, for the first time since May 2022. New business from non-domestic clients remained a drag on total order books, with new export sales falling for a twelfth straight month. Backlogs of work continued to decline in February, but the pace of decline was the weakest since August 2022. Meanwhile, job creation was sustained during the latest survey period, extending the current sequence of employment growth that began over two years ago. The data also indicated a further decline in input prices in the private sector. Prices charged for goods and services rose sharply, albeit at the weakest rate since December 2021.