2017.01.2405:00:00UTC+00Eurozone Private Sector Growth Robust In January

The euro area private sector continued to maintain a robust pace of expansion in January, flash survey data from IHS Markit showed Tuesday.

The composite output index fell slightly to 54.3 in January from 54.4 in December. Economists had expected the index to rise to 54.5.

Nonetheless, any reading above 50 indicates expansion in the sector.

Moreover, the latest reading was the second highest since December 2015 and one of the highest readings seen over the past five-and-a-half years.

The flash services Purchasing Managers' Index dropped to a 3-month low of 53.6 in January from 53.7 in the previous month. It was expected to climb to 53.8.

Meanwhile, the manufacturing PMI rose to a 69-month high of 55.1 in January from 54.9 a month ago. The expected score for the month was 54.8.

The start of the year also saw the largest monthly rise in employment since February 2008 amid rising optimism about the business outlook. Hiring gained momentum in both services and manufacturing on the back of sustained growth of new orders.

On the price front, inflationary pressures intensified further across the euro area economy.

"The eurozone economy has started 2017 on a strong note. The January flash PMI is signalling respectable quarterly GDP growth of 0.4 percent with a broad-based expansion across both manufacturing and services," Chris Williamson, chief business economist at IHS Markit said.