BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The euro area private sector eased in January as the Omicron variant of COVID-19 constrained activity, most notably across the service sector, final survey data from IHS Markit showed on Thursday.
The composite output index dropped to 52.3 in January from 53.3 in December. The flash score was slightly below the flash 52.4.
The indicator signaled the weakest increase in business activity since the index moved back into growth territory last March.
The services Purchasing Managers' Index came in at 51.1, down from 53.1 in December and the flash 51.2.
The weaker expansion in January reflected softer growth among service providers, as manufacturing output increased at a faster pace.
Germany recorded somewhat of a rebound in business activity during January, moving back into growth territory following December's fractional decline. The composite output index advanced to 53.8 from 49.9 in the previous month. The flash reading was 54.3.
The services PMI improved to 52.2, as initially estimated, from 48.7 in December.
On the other hand, momentum was lost in France, Italy broadly stagnated and Spain registered its first contraction since last February.
France's composite PMI stood at 52.7, in line with flash estimate, and down from 55.8 a month ago. Similarly, the services PMI dropped to 53.1 from 57.0 in December.
Italy's private sector returned to positive territory in January with the index rising to 50.1 from 54.7 in the prior month. The services PMI declined to 48.5 from 53.0 a month ago. The expected score was 50.0.
Spain's composite PMI plunged to 47.9 from 55.4 in December. Likewise, the services index declined to 46.6 from 55.8 a month ago. The expected reading was 51.5.
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