Eurozone Private Sector Logs Marginal Growth

(RTTNews) - Euro area private sector grew modestly in February as Germany, Spain and Italy expanded, but French activity hit the lowest in more than a year, final results of the purchasing managers' survey by S&P Global showed on Wednesday.

The HCOB final composite output index remained unchanged at 50.2 in February. The score also matched the flash estimate of 50.2.

As the index stayed above the neutral 50.0 mark, the figure signaled growth in the private sector.

The services Purchasing Managers Index decreased to a three-month low of 50.6 from 51.3 in January, indicating a loss of growth momentum.

"The Eurozone economy has barely grown for two months in a row now, as the mild growth in the services sector is almost fully eaten up by the recession in the manufacturing sector," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

The survey showed that growth was led by Spain, where a strong and accelerated increase in business activity was registered.

Germany was a laggard, despite the largest euro area economy registering a second successive expansion. Lastly, France was a hefty drag as business activity contracted for a sixth straight month and at the steepest pace in over a year.

Germany's final composite output index logged 50.4 in February, slightly down from 50.5 in January. The reading was well below the flash estimate of 51.0. Service sector activity growth moderated but this was counterbalanced by a slower reduction in manufacturing output.

The services PMI dropped to 51.1 from 52.5 in January. The flash reading was 52.2.

The French private sector sank deeper into contraction in February, as signaled by the HCOB composite output index falling further below the 50.0 no-change mark. At 45.1, the index fell from 47.6 in January but held above the flash estimate of 44.5.

The services PMI fell to 45.3 in February from 48.2 in January and also below the flash estimate of 44.5.

Italy's private sector moved out of contraction zone for the first time in four months in February. The composite output index registered 51.9, up from 49.7 in January. The services PMI rose notably to 53.0 from 50.4 a month ago.

Spain's private sector growth strengthened in February with the growth firmly centered on the services economy as manufacturing production was little changed since January.

The HCOB composite output index climbed to 55.1 from 54.0 in the previous month. The services PMI rose to 56.2 from January's 54.9.