It's a contrast of manufacturing and services activity for both the French and German PMI readings in January but the summary of it is that things aren't materially worsening. However, they aren't improving by much either as both major European economies are still shy of reaching growth territory to start the new year.

A marginal contraction was recorded for both and that pretty much sums up the euro area's predicament at the moment. Sure, the less harsh winter has certainly helped with the less bleak outlook but demand conditions are still largely struggling. High inflation remains a problem and while headline annual inflation has dropped off slightly, core inflation continues to be high and that isn't something that will help with the situation.

If anything else, the less severe downturn will continue to allow ECB policymakers to vindicate their hawkish undertone.