Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the Eurozone on Friday. Eurozone's preliminary manufacturing PMI declined to 52.3 in January from 53.2 in December. Analysts had expected the index to fall to 53.0.

The decline was driven by a slower pace of expansion in business activity.

Eurozone's preliminary services PMI fell to 53.6 in January from 54.2 in December. Analysts had expected the index to remain unchanged at 54.2.

"The cooling in the pace of growth in euro area business activity at the start of 2016 is a disappointment but not surprising given the uncertainty caused by the financial market volatility seen so far this year", Markit's Chief Economist Chris Williamson said.

He noted that data was signalling the Eurozone's economy could expand 0.3% - 0.4% in the first quarter.