Eurozone businesses see slow start to the year

Markit’s final composite purchasing managers’ index for the Eurozone came in at 53.6 in January, up a touch from the flash estimate of 53.5 but weaker than December’s reading of 54.3.

The final Eurozone services business activity index was in line with the flash estimate at 53.6 but down from December’s 54.2.

Chris Williamson, chief economist at Markit, said: “A disappointing Eurozone PMI survey for January indicated one of the weakest expansions seen over the past year and raises the prospect of further stimulus.

"Growth of activity, order books and employment all lost momentum, but perhaps most worrying of all from a policymaker’s perspective is the intensification of deflationary pressures. Average prices charged for goods and services dropped at the fastest rate since last March."

Pantheon Macroeconomics said the data revealed a slow start to the year but are no cause for alarm, with the PMIs continuing to indicate a stable cyclical recovery in the euro area despite the dip.