The HCOB Eurozone Services PMI edged up to 51.8 in February 2026 from 51.6 in January, reaching a two-month high and indicating continued, albeit modest, expansion in the services sector. The reading came in just below market expectations of 51.9.
Growth was underpinned by ongoing increases in business activity, though the pace of new business expansion slowed, suggesting a loss of demand momentum. Employment was unchanged, bringing an end to a five-year period of continuous job creation as firms put hiring plans on hold.
Cost pressures eased slightly: input prices rose more slowly than in January, and output price inflation in the services sector also moderated. Despite the softer backdrop for orders and pricing, service providers still anticipated higher activity over the coming 12 months, although their optimism dipped marginally compared with January.
