The euro area economy edged closer to stagnation at the start of 2019, with businesses reporting the weakest rise in output for five-and-a-half years and the first fall in demand for over four years.

The IHS Markit Eurozone Composite PMI fell to 50.7 in January from 51.1 in December, its lowest since July 2013, according to the preliminary ‘flash’ reading. The flash estimate is typically based on approximately 85% of the final number of replies received each month. The latest reading indicated only marginal growth of business output, contrasting markedly with the strong rates of expansion seen this time last year.