Hopes that Europe will avoid recession this winter were boosted by a report on Tuesday that the economy of the eurozone expanded in January for the first time in six months.
In January, the S&P Global Flash purchasing managers’ index (PMI) for the Eurozone increased to 50.2 from 49.3 in December. A figure greater than 50 shows expansion.
Lower inflation, improved supply chains, and the recent reopening of China’s economy have all boosted confidence in the European economy heading into 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.