FX.co ★ Euro Area Services PMI Edges Down to 4-Month Low

In January 2026, the HCOB Flash Eurozone Services PMI fell to 51.9, marking its lowest point in four months, down from 52.4 in December and missing projections which anticipated a rise to 52.6. This indicates a deceleration in the growth of the services sector, accompanied by a stagnation in staffing levels after uninterrupted job expansion over nearly five years. Despite this slowdown, the rate of charge inflation surged to its highest in 11 months, even as business sentiment demonstrated signs of improvement. In Germany, the services sector managed to expand at a relatively strong rate, contrasting the situation in France, where service companies entered a state of contraction. This contraction could be associated with political challenges related to finalizing the 2026 budget.