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Germany's manufacturing output declined by 0.9 point to 53.5, with headline services dropping by 1 point to 55.0, slightly higher than the consensus. New business declined from high levels, while outstanding business and business expectations grew.
French composite PMIs were revised down 0.3 point to 50.2, as the downward revision was mainly due to service sector. However, headline services index bounced back to 50.3 in January, mainly due to strong business expectations component, suggesting that the impact of terror attacks is fading away.
"Our composite PMI based GDP indicator for Germany points to a 0.6% q/q growth in Q1, just slightly higher than our 0.5% q/q forecast" says Barclays in a research note "Frances GDP should rebound in Q1 16, after a Q4 15 soft patch"
