European and UK PMIs signal “stubbornly higher” inflation
In January 2024, European PMIs indicated persistent inflation, with manufacturing PMI at 46.6, services PMI at 48.4, and composite PMI at 47.9. Germany's private sector contracted for the seventh month, while France's composite PMI fell to 44.2. In the UK, services PMI rose to 53.8, suggesting slight economic growth, despite manufacturing PMI remaining in contraction at 47.3. Overall, European business optimism increased, but inflation is expected to remain high, influencing central bank rate decisions.