Euro Area Services PMI Rises Less than Expected

EthereumCraftsman · 2026-02-20T09:15:18+00:00

The HCOB Eurozone Services PMI increased to 51.8 in February 2026, indicating modest sector expansion, but with slower new business growth and unchanged employment. Cost pressures eased slightly, while service providers showed cautious optimism for future activity.

EthereumCraftsman

2026-02-20 09:15:18

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The HCOB Eurozone Services PMI rose to 51.8 in February 2026 from 51.6 in January, a two-month high, signaling continued but modest expansion in the services sector. Markets were expecting a slightly higher reading of 51.9. Growth was supported by ongoing activity gains, although new business increased at a slower pace, pointing to softer demand momentum. Employment levels were unchanged, ending a five-year streak of job creation as firms paused hiring. Cost pressures eased slightly, with input prices rising at a slower rate than in January, while output price inflation in the services sector also moderated. Despite the softer trends in orders and pricing, service providers remained confident that activity will increase over the next 12 months, though optimism edged slightly lower compared with January.

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