The Eurozone Composite PMI Output Index climbed to 51.9 in February, up 0.7 points from the previous month, marking a three-month high, according to a preliminary report released by S&P Global and Hamburg Commercial Bank (HCOB) on Friday.
The index, which tracks combined activity in the services and manufacturing sectors, signalled continued expansion across the bloc.
The Services PMI Activity Index rose 0.2 points month-on-month to 51.8, reaching a two-month high. Meanwhile, the Manufacturing PMI Output Index increased to 52.1, touching a six-month high and moving further into growth territory.
Commenting on the data, HCOB Chief Economist Dr. Cyrus de la Rubia said it may be too early to draw firm conclusions, but the latest reading could mark a turning point for the manufacturing sector. He noted that since June 2022, the headline PMI had entered growth territory only once before, in August last year.
According to de la Rubia, the manufacturing sector now appears to be on a more stable footing and could contribute to overall economic growth this year instead of weighing on the economy.
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