In January 2018, PMI index of 19 euro-area countries increased to 58.6 (58.1) according to the preliminary estimate of IHS Markit. At the same time, market experts expected a decline to 57.9.
Besides, the rate has posted new peak since 2006 on better performance in the service sector.
For reference, the rate above 50 shows growing business activity. With the current figures, GDP growth in the euro-area will be some 1% in Q1 2018.
Processing sector PMI in the euro-area dipped to 59.6 (60.6), while service sector recorded an increase to 57.6 (56.6 earlier), whereas the expectations were voiced at 60.3 and 56.4 respectively.
According to a senior analyst in IHS Markit, the market faces demand-supply imbalance now – with demand exceeding supply, producers can dictate prices in the market.
Germany posted lower PMI at 58.8 in January (58.9 a month before). Service sector PMI reached 57 (55.8) and industrial one decreased to 61.2 (63.3).
France's PMI improved to 59.8 (59.7). Service sector PMI was 59.3 (59.1) despite the anticipated decline. However, the industrial sector recorded some weakening to 58.1 (58.8 earlier).