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
10:08p Free Access to Capital Event for Small Business Owners Hosted by VEDC, NLP and UBS Elevating Entrepreneurs
10:06p GOOGLE 'C' : LinkedIn and other companies propose 6 million square feet of offices for north Mountain View
10:06p FORUM ENERGY : Audited results for the year ended 31 December 2014
10:05pDJWoolworths Sells Warehouse Group Stake to James Pascoe
10:04p BOISE CASCADE : announces stock repurchase program (BRIEF)
10:03p SHARP : expected to post 200 bil. yen net loss: sources (UPDATE1)
10:01p Statement from Ellis Yan Regarding Lawsuit
10:01p SEIKO EPSON : Epson Makes Software Development Company Avasys Corporation a Subsidiary
10:01p TCP : Robbins Geller Rudman & Dowd LLP : Files Class Action Suit on Behalf of Investors in TCP International Holdings Ltd.
10:01p BUSINESS MACHINES : Robbins Geller Rudman & Dowd LLP : Files Class Action Suit against International Business Machines Corporation
Latest news
Advertisement
Hot News 
LSK : Indian River returns to "Tradition' by staging "Fiddler on the Roof"
TERTIARY MINERALS : 23 February 2015 - DIRECTOR'S DEALINGS, ISSUE OF WARRANTS, TOTAL VOTING RIGHTS AND CORRECTION
RURELEC : To Pay Off Short-Term Loan As It Eyes Return To Dividends
FALANX : Cyber Insurance Joint Venture
NXP to buy Freescale, create $40 billion company
Most Read News
06:16p OPOWER : reports 4Q loss
06:21p Apple, Google poaching settlement appears headed for approval
06:58pDJCostco Names Citi, Visa as New Credit Partners -- 4th Update
06:51pDJRussia Agrees Dispute Over East Ukraine Gas Won't Endanger EU Supply -- 2nd Update
07:52pDJSpringleaf Nears $4.25 Billion Deal for Citigroup's OneMain -- Update
Most recommended articles
10:05pDJWoolworths Sells Warehouse Group Stake to James Pascoe
09:55p EUR/USD TECHNICAL ANALYSIS : Standstill Above 1.11 Continues
09:55p USD/JPY TECHNICAL ANALYSIS : Resistance Sub-121.00 at Risk
09:55p US DOLLAR TECHNICAL ANALYSIS : Range Top Threatened Anew
09:38p Brent crude oil steadies above $60 after sharp Monday fall
Dynamic quotes  
ON
| OFF