According to the report from IHS Markit, February’s Eurozone PMI Composite Output Index indicated firmer growth of the eurozone’s private sector economy when compared to January. The seasonally adjusted index strengthened to 51.9, up from 51.0 and a three month high. Moreover, the index improved on the earlier February flash reading of 51.4.

There remained a notable divergence between the performances of the manufacturing and service sectors during February. On the one hand, ongoing trade tensions, weakness in the automotive industry and political uncertainties continued to weigh on demand for manufactured goods. In contrast, service providers registered modest but nonetheless improved growth in activity when compared to January.

The Eurozone PMI Services Business Activity Index remained above the crucial 50.0 no-change mark in February, rising to 52.8, from 51.2 in January and a three-month high. All countries recorded growth in activity, albeit to varying degrees. Whilst France and Italy registered marginal gains, activity levels in Germany, Ireland and Spain all rose to robust degrees.