The eurozone economy grew in January for the first time in six months, a closely watched survey showed Tuesday, raising hopes that Europe will avoid a recession this winter.
The S&P Global Flash Eurozone purchasing managers’ index (PMI) rose to 50.2 in January from 49.3 in December. A figure above 50 indicates growth.
The European economy has benefited from lower inflation, improved supply chains and the recent reopening of China’s Covid-scarred economy, leading to increased optimism for 2023.
“The survey undoubtedly brings welcome good news to suggest that any downturn is likely to be far less severe than previously feared and that a recession may well be avoided altogether,” said Chris Williamson, S&P’s chief business economist.
He said the survey suggested “a nadir was reached back in October, since when fears over the energy market in particular have been alleviated by falling prices, helped by the warmer than usual weather and generous government assistance”.