EU HCOB Composite PMI Final (Feb) 51.9 vs. Exp. 51.9 (Prev. 51.9, Rev. From 51.3, Low. 51.7, High. 51.9)

• “For the European Central Bank (ECB), these data are certainly one more reason why it is unlikely to plan any further interest rate cuts for the time being. Costs faced by the service sector rose at a high rate once again in February. Higher wages, but also rising energy and transport costs, are cited as reasons for this."

The EU HCOB Composite PMI for February came in as expected at 51.9, indicating stable economic activity. This consistent reading suggests the European Central Bank is unlikely to consider further interest rate cuts, especially given the ongoing pressures from rising costs in the service sector, including wages and energy. Overall, it reinforces the notion of steady growth, with implications for monetary policy moving forward.