Eurozone services sector business activity continued to expand in January, but at a slower pace than in December, according to the latest combined Purchasing Managers' Services Index (PMI). The eurozone PMI for services fell to 50.2 in January from 50.6 in December, according to market sources. Analysts had expected it to fall to 50.4. A reading above 50 indicates that the services sector is expanding, while one below 50 indicates contraction.
The chief drag on the eurozone performance was Germany, which recorded a further contraction in services activity in January. The German services PMI fell to a seasonally adjusted 43.9 in January from 45.4 in December. The reading was significantly worse than expected, with the consensus result seen unchanged at 45.4. France provided a much needed boost to activity, with the French services PMI rising to a seasonally adjusted 54.8 in January from 54.4 in December. //www.fxcentre.com