The euro area private sector growth eased in December as the manufacturing sector contracted and the services activity logged a weaker expansion, a flash survey compiled by S&P Global showed on Tuesday.
The HCOB composite output index, which measures overall private sector activity, dipped to 51.9 in December from a final reading of 52.8 in November. The expected reading was 52.7.
The score signaled a monthly expansion in business activity at the end of 2025. The increase in December showed that business activity rose in each month of 2025. The last time such an expansion in each month of a calendar year was seen in 2019.
The service sector remained the primary driver of eurozone growth. Meanwhile, the manufacturing output decreased slightly, ending a nine-month sequence of growth.
The services PMI slid to 52.6 from 53.6 in the previous month. The score was seen at 53.3.
At 49.2, the factory PMI dropped further below the 50.0 mark to an 8-month low. The score was expected to rise to 49.9 from 49.6.
Despite all the global uncertainty, the eurozone economy has kept its head above water throughout the year, ING economist Bert Colijn said.
“While we are cautious about expecting a strong acceleration, we do expect a gradual pickup in economic growth over the course of 2026,” the economist added.
The currency bloc’s largest economy – Germany registered a slower rise in output in December. Meanwhile, output in France broadly stagnated at the end of 2025.
Germany’s private sector growth slowed for the second straight month in December. The flash HCOB composite output index registered a four-month low of 51.5 in December, down from 52.4 in November.
At the broad level, growth in the service sector eased to its weakest since September. The indicator dropped to 52.6 in December from 53.1 in the previous month.
In manufacturing, production levels returned to contraction territory, to end to a nine-month sequence of growth. The manufacturing PMI hit a 10-month low of 47.7, down from 48.2 in November.
France’s private sector economy broadly stagnated in December. The headline HCOB composite output index posted 50.1 in December, down from 50.4 in November.
At sector level, services activity saw only a fractional increase, while manufacturing output almost stabilized in December.
The services PMI fell to a two-month low of 50.2 from 51.4 in November. At 50.6, the manufacturing PMI hit a 40-month high, up from 47.8 a month ago.
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