Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Euro-Zone Business Activity Shrinks at Slowest Rate in 10 Months

02/05/2013 | 04:49am US/Eastern

By Alex Brittain

Business activity in the euro zone shrank at its least severe rate in 10 months in January, adding to signs that while the crisis-hit economy is still weak, it may have passed its worst point.

Resilience in the currency bloc's economy was largely thanks to solid growth in Germany, a survey from data firm Markit showed Tuesday, whereas activity among French businesses fell at its sharpest rate in almost four years.

"The euro zone is showing clear signs of healing, with the downturn easing sharply in January and the region moving closer to stabilization in the first quarter," said Chris Williamson, Markit's chief economist.

The firm's composite Purchasing Managers' Index for the euro zone rose to 48.6 in January from 47.2 in December. The sub-50 reading means activity across the manufacturing and services industries was shrinking in January, but at the slowest rate in 10 months. Tuesday's results were better than a preliminary estimate of 48.2 published last month.

Evidence of German resilience in Tuesday's surveys is backed by polls of businesses in Europe's largest economy, which have strengthened sharply in recent months. Although other countries are yet to show similar signs of a rebound, strength in Germany could benefit the euro zone as a whole due to the countries' strong trade ties. If the bloc's economy does recover it would ease the burden on governments currently struggling to balance their public finances, and make it easier to resolve the debt crisis that has pushed several member states, including Greece and Portugal, to succumb to international bailouts.

Write to Alex Brittain at alex.brittain@dowjones.com

React to this article
Latest news
Date Title
02:24a MANCHESTER UNITED : Hero McPartland calls on Villa to harness spirit of '57 to cause upset
02:13a JUVENTUS FOOTBALL CLUB : Heysel dead remembered
02:13a ASOS : Spotted in
02:13a MARKS AND SPENCER : Bread now >> HASADINIT ; NATIONAL NEWS IN BRIEF
02:13a MANCHESTER UNITED : Spirit of '57 can LEAVEVILLA as pretty as a picture
02:13a COMMERCE AND ECONOMIC DEVELOPMENT BUREAU OF HO : SCED to visit Germany and France
02:12a PORSCHE AUTOMOBIL SE : Photo bombshell
02:11a ADIDAS : guard faces jail over brady pics ; Ashworth officer tried to sell snaps of killer to News of the World
02:11a I'LL : Stevenson I'LL
02:10a MANCHESTER UNITED : Rooney's so hungry for silver
Latest news
Advertisement
Hot News 
IMMUNODIAGNOSTIC SYSTEMS HLDGS : Expects Further Revenue Fall In Current Year
HERON THERAPEUTICS : DE/ : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)
ESSENDEN : 29 May 2015 - Rule 2.6 (c) - 2nd Extention
CLEARSTAR : Chairman Barney Quinn Buys Shares (DIRECTOR DEALINGS)
MINCO : 2015 Q1 MD&A Report
Most Read News
05/29 NATURALLY SPLENDID ENTERPRISES LTD : Naturally Splendid Launches Bulk Ingredient Division
05/29 UGI : completes $465 million acquisition of French liquefied petroleum gas distribution business (BRIEF)
05/29 PLATINO ENERGY : Files First Quarter 2015 Financials and MD&A
05/29 NATURALLY SPLENDID ENTERPRISES : Launches Bulk Ingredient Division
05/29 SOLARCITY : eager to tap local supplier base
Most recommended articles
01:24a CHINA'S SLOWING ECONOMY MAY STEADY LATER THIS YEAR : state think tank
05/29 WEEKLY TRADING FORECAST : ECB, BoE, NFPs and Much More Ahead
05/29 US Dollar Breakout Velocity Rests with Fed’s Liftoff Outlook after NFPs
05/29 Strong sales could shift Ford, GM to higher gear
05/29 Merkel appeals to Germans to back trade pact ahead of G7 meeting