Eurozone growth eases in December but quarterly growth strongest since 2023

6th Jan 2026 08:07

(Sharecast News) - Growth in the eurozone eased in December but the bloc finished the year off with its strongest quarterly growth since the second quarter of 2023, according to a survey released on Tuesday.

The final HCOB composite purchasing managers' index - which measures activity in both the manufacturing and services sectors - fell to 51.5 in December from a 30-month high of 52.8 in November. A reading above 50.0 indicates expansion, while a reading below signals expansion.

The services PMI business activity index for the eurozone edged down to 52.4 from 53.6.

In terms of countries, Spain enjoyed the best performance, with its composite PMI output index hitting a two-month high of 55.6 in December, up from 55.1 the month before.

Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: "The eurozone services sector has grown for seven months in a row. The pace of expansion slowed in December, but overall, the picture looks good. Companies have even increased their staffing levels more strongly, and new business indicates that they remain on a growth path.

"Overall, the recovery in services gained momentum in the fourth quarter, which is a good basis for starting the new year with confidence."

He noted that the composite PMI averaged a visibly higher level in the last three months of the year than in the third quarter.

"Against this backdrop, GDP growth is likely to have accelerated. The decisive impetus is coming from the service sector, while manufacturing has slowed down. In 2026, the service sector should remain on a moderate growth path.

"The manufacturing sector is likely to benefit from higher demand for defence equipment and construction machinery, which are needed, among other things, to implement infrastructure projects in Germany. As a result, economic growth of well over 1% should be possible again, but is certainly not overwhelming."