CHART OF THE WEEK

The concerns over the global economy weighing on markets in recent months have yet to affect business confidence in the Eurozone.

OUR ANALYSIS

Preliminary estimates of PMI indices for January indicate a fall from 54.3 to 53.5 in the composite PMI, a figure consistent with levels observed since early 2015. These levels are in line with annualised growth of around 1.5%-2%.

Fourth quarter figures are likely to disappoint slightly given the negative impact of mild temperatures on energy production and clothing sales, but Eurozone growth should gain pace in the first quarter of 2016.

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