U.S. Business Activity Growth Slows as Europe Picks Up Pace

Economic Activity Overview - Private-sector activity in the U.S. slowed in February, with the S&P Global Flash U.S. Composite PMI falling to 52.3 from 53.0 in January, indicating continued growth but at a reduced pace [1] - In the eurozone, the composite index rose to 51.9 in February from 51.3 the previous month, surpassing economists' expectations of 51.5 [2] Sector Performance - Eurozone activity was bolstered by a significant increase in manufacturing, which returned to positive territory for the first time since August, marking its highest reading in over three-and-a-half years [3] - German industry led the rebound, benefiting from government stimulus after years of stagnation, with GDP expected to have grown visibly in the first quarter [3] Future Outlook - Companies in both the service and manufacturing sectors in the eurozone are optimistic about the next 12 months, suggesting GDP growth of more than 1% this year [4] - The eurozone is showing resilience against tariff shocks and subdued international demand, with increased government investment and a shift towards domestic demand supporting stabilization [4][6] - The European Central Bank anticipates gradual recovery in euro area activity, supported by domestic demand [5]