-Chris Williamson, chief economist at Markit
The German economy started the year on an upbeat note, as demand increased for the first time in three months, while employment rose. According to Markit Economics, flash composite PMI reading, which measures activity in the manufacturing and services sectors accounting for more than two-thirds of the Europe's largest economy, ticked up to 52.6 in January from the final reading of 52.0 in December. Manufacturing PMI, however, fell slightly in the reported period, declining to 51.0 from 51.2 in the preceding months. The drop was offset by an increase in services PMI, which increased to 52.7, up from 52.1. In France, however, the economy faced a sharper contraction in manufacturing and services that was coupled with companies' deteriorating pricing power. Composite PMI declined to 49.5 in January, down from 49.7 in the preceding month, remaining in the red zone for a ninth month in a row. In the services sector, the PMI came in at 49.5 in the reported period, after breaking above the 50 point that points to expansion in activity last month. The manufacturing gauge, however, rose to an eight-month high of 49.5 this month. For the whole Euro zone, the private sector activity increased to the highest level in five month in January, with the composite PMI climbing to 52.2, up from 51.4 in December. The manufacturing reading inched higher to 51.0, up from 50.6 a month earlier, while services PMI came in at 52.3 versus 51.6 in December. Meanwhile, Greece's Syriza celebrates victory in the snap general elections.
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