EU: Markit Manufacturing PMI improves to 59 in January vs. 57.5 expected

• Markit Manufacturing PMI for eurozone rose slightly in January.
• Service sector lost growth momentum at the start of the new year.
• EUR/USD continues to trade in the negative territory, holds above 1.1300.

The business activity in the eurozone's manufacturing sector expanded at a more robust pace in early January than it did in December with IHS Markit's Manufacturing PMI rising to 59 from 58. This print surpassed the market expectation of 57.5.

On a negative note, Services PMI fell to 51.2 from 53.1 in December, compared to analysts' estimate of 52.2. Finally, Composite PMI edged lower to 52.4 from 53.3.

Commenting on the data, "while the Omicron wave has dented prospects in the service sector, the impact so far looks less severe than prior waves," noted Chris Williamson, Chief Business Economist at IHS Markit. "Prices for goods and services are rising at a joint-record rate as increasing wages and energy costs offset the easing in producers’ raw material prices, dashing hopes of any imminent cooling of inflationary pressures."

Market reaction

The EUR/USD pair stays under modest bearish pressure following these data and was last seen losing 0.12% on the day at 1.1327.