The private sector in the seventeen countries that share the euro saw the fastest expansion in activity in six months to open 2010 on the back of a sharp increase in German growth, according to The Wall Street Journal. On Monday, the Markit announced that the combined Services Business Activity Index for the eurozone added one point in January to reach 55.2, while the Composite Output Index added almost a point to reach 56.3 as the Purchasing Managers Index edged just slightly lower to 56.9.
Chris Williamson, the chief economist at Markit, said “The eurozone has started 2011 on a solid footing,” estimating that the data corresponded to “economic growth at a quarterly pace of approximately 0.7% in January.” The gain was driven by a near-record increase in German growth as well as an unexpectedly strong surge in French services activity. The data highlighted the continued divergence of the region’s leading economies from the weaker growth posted by debt-laden peripheral economies like Ireland, Greece, and Portugal.