January 2018 Eurozone Markit, manufacturing, services and composite PMI’s 24 January 2018

  • Prior 60.6
  • Output 61.1 vs 62.2 prior
  • Expectations 67.9 vs 67.6 prior
  • Services 57.6 vs 56.4 exp. Prior 56.6
  • New orders 57.2 vs 56.7 prior. Highest since Aug 2007
  • Composite 58.6 vs 57.9 exp. Prior 58.1
  • Output prices 54.6 vs 53.2 prior. Highest since Apr 2011


  • Factory payroll growth held close to recent record highs while service sector job gains hit the highest since October 2007
  • Price pressures meanwhile intensified during January, in part reflecting improved pricing power as demand outpaced supply, as well as rising oil prices. Average input costs and selling prices both showed the biggest monthly increases since April 2011, with rates of inflation accelerating in both manufacturing and services.

Markit’s Chris Williamson adds more;

“Price pressures are meanwhile running at their highest for almost seven years, accelerating further at the start of 2018. Higher oil prices have pushed up costs, but pricing power more generally has improved as demand outstrips supply for many goods, leading to a sellers’ market.”

We’ll have to see how this inflation translates into the headline numbers but if they’re any indication of direction, the ECB coud well have to make some decisions sooner rather than later, although tomorrow’s meeting is probably too soon. We could find this data coming up in conversation tomorrow though.

Ryan Littlestone

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