| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:30 | Germany | Services PMI | January | 51.2 | 51 | 52.5 |
| 08:30 | Germany | Manufacturing PMI | January | 42.5 | 42.7 | 44.1 |
| 09:00 | Eurozone | Manufacturing PMI | January | 45.1 | 45.3 | 46.1 |
| 09:00 | Eurozone | Services PMI | January | 51.6 | 51.5 | 51.4 |
| 09:30 | United Kingdom | Purchasing Manager Index Manufacturing | January | 47 | 47 | 48.2 |
| 09:30 | United Kingdom | Purchasing Manager Index Services | January | 51.1 | 50.9 | 51.2 |
| 10:00 | Eurozone | ECB President Lagarde Speaks | | | | |
EUR strengthened against other major currencies in the European session on Friday as investors digested the Eurozone’s flash PMI data for January, which indicated that the region’s business activity returned to growth at the beginning of 2025.
S&P Global reported that its composite purchasing managers’ index (PMI) for the euro area increased to 50.2 early this month from 49.6 in December 2024. The latest reading pointed to a marginal expansion in the Eurozone’s private sector output after four months of contractions (the 50-point mark separates growth from decline). Economists had forecast the indicator to edge up to 49.7.
According to the report, the renewed increase in private sector business activity was due to a continued (albeit slightly slower than in December) growth in services activity and reduced contraction (though still solid) in manufacturing.
S&P Global also highlighted that input costs rose sharply, with the rate of inflation hitting a 21-month high, and output prices also increased at a faster pace.
The latest PMI report prompted markets to trim somewhat of their bets on European Central Bank interest rate decreases. According to Bloomberg, they are currently pricing in 90 basis points of rate cuts by the end of 2025, down from over 100 basis points earlier this week.