Eurozone economic expansion decelerates once more in January

Eurozone Private Sector Growth Eases at Start of 2026

At the outset of 2026, the eurozone’s private sector maintained its growth trajectory, mirroring the steady expansion observed throughout the previous year. However, the pace of this growth moderated further, as it had in December, indicating a continued slowdown and resulting in an overall expansion rate that remains significantly below the long-term norm.

The more subdued increase in business activity during January was largely due to demand stagnating, with new orders showing minimal improvement and employment levels remaining unchanged. Despite these challenges, businesses across the eurozone expressed greater confidence about the coming year, recording their most optimistic outlook for activity growth in recent times.