Eurozone Faces Economic Strains as Services Sector Shows Uneven Recovery

December PMI data reveals mixed performance across European economies, with services growth offsetting manufacturing declines in some regions.

The eurozone's composite PMI rose slightly to 49.6 in December, remaining below the 50 mark that signals economic contraction.
Services sectors in countries like Spain and Germany showed growth, while France's continued to contract and Italy's saw only modest recovery.
Manufacturing activity across the eurozone remains in decline, deepening concerns about the bloc's overall economic health.
Inflationary pressures persist across the region, driven by rising wages and energy costs, complicating monetary policy decisions for the European Central Bank (ECB).
Broader global factors, including U.S. tariff threats under President-elect Donald Trump, add further uncertainty to the eurozone's economic outlook.