Data on Friday will offer a snapshot of business activity in Europe ahead of this month’s European Central Bank meeting to set interest rates.
The January reading for the IHS Markit composite purchasing managers’ index — which combines manufacturing and services activity — will be closely watched, analysts said, as it comes before the inauguration of Donald Trump. The incoming president has promised sweeping tariffs, which may damp sentiment in coming months.
Many of the bloc’s largest economies, including Germany and France, are already battling an economic slowdown. A consensus of analysts expects a reading of 49.7, below the 50 mark that separates growth from contraction. Even so, that would mark a slight improvement on December’s reading of 49.6.