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
Recommend:
0

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

Recommend :
0
React to this article
Latest news
Date Title
<1m ago SBERBANK ROSSII : Russia's Sberbank refutes report it plans to leave Hungarian market
<1m ago ENEL : Romanian government expresses interest in local power distribution firm of Italy's Enel
<1m ago ALIOR BANK : Carlo Tassara cleared to put off sale of Polish Alior Bank till end mid-2016
<1m ago GAZPROM : natural gas deliveries to Romania remain volatile
<1m ago TAKATA : Hungary's government signs partnership agreement with Japanese Takata
<1m ago ANK BASHNEFT' : Head of Russian industrial holding Sistema under house arrest.
<1m ago Serbia hires banks for a potential Eurobond issue - market talk
1m ago CATHAY FINANCIAL : believes Taiwan's GDP to accelerate 3.59% y/y in 2014
1m ago SBERBANK ROSSII : Private lender Denizbank applies to issue EUR 70mn domestic bills.
1m ago Pakistan VIP culture under fire from all sides
Latest news
Advertisement
Hot News 
CENKOS SECURITIES : Shares Rise As It Evaluates Share Buy-Backs After Profit Jump
ULTRASONIC : Germany-listed Ultrasonic says top China executives missing, cash gone
GLIMCHER REALTY : Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Glimcher Realty Trust Stockholders
SWEETT : DIRECTOR DEALINGS: Sweet Group Non-Executive Receives Shares
WASHINGTON PRIME : GLIMCHER INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Glimcher Realty Trust
Most Read News
1d ago ADOBE SYSTEMS : revenue forecast misses, shares slip
1d ago BARCLAYS : N.Y. says Barclays move to toss fraud case should be denied
1d ago RAYTHEON : House Ways and Means Committee - Hearing
1d ago DELTA AIR LINES : announces Los Angeles-San Antonio nonstop flights, starting in April
1d ago Amid coffee rivalry, McDonald's Canada to sell java in grocery stores
Most recommended articles
5m agoDJBayer Plans Investments as It Sees Global Crop Market Growing
6m agoDJBOE Dissenters Fail to Attract Support --Update
7m agoDJUK Unemployment Falls Further, but Wages Muted
12m ago China cenbank injects $81 billion into major banks to support economy
17m agoDJMalaysia August CPI Up 3.3% on Year; Above View
Dynamic quotes  
ON
| OFF