The HCOB Eurozone Composite PMI Output Index compiled by S&P Global edged down to 51.3 in January from 51.5 in December, signalling the weakest pace of expansion since September, while still pointing to growth for a thirteenth consecutive month. The loss of momentum was led by a slowdown in services activity, which outweighed a fresh upturn in manufacturing output. Demand remained fragile, with new orders barely increasing, and private sector employment largely flat as manufacturing job cuts offset modest hiring in services.

Despite softer current conditions, business sentiment improved. Eurozone firms reported their strongest expectations for activity growth since May 2024, although confidence levels remained below the long-run average, S&P Global said in a press release.

Eurozone private sector growth slowed again in January, with the Composite PMI easing to 51.3, its weakest expansion since September.
Services-led softness offset manufacturing gains, while new orders and employment remained subdued.
Despite fragile demand, business optimism improved to its strongest since May 2024.
Inflation pressures intensified, with input costs and output charges rising sharply.

Input cost inflation rose for a third successive month to an eleven-month high, while output charges increased at their fastest pace in nearly a year. Both indicators remained well above their respective historical averages, pointing to a renewed build-up of inflationary pressures.

Among the major eurozone economies, Spain topped the index rankings with a reading of 52.9, despite marking a seven-month low. Germany followed with an index of 52.1, a two-month high but slightly below its flash estimate of 52.5. Italy posted a Composite PMI of 51.4, also a two-month high, while France slipped into contraction territory at 49.1, its weakest level in three months and below the earlier flash reading of 48.6.

“Service companies in the eurozone have expanded their business activities for the eighth month in a row. The growth trajectory can be described as decent, but the situation is still not comfortable. Companies hardly hired any new staff in January. The fact that new business barely grew also shows that the recovery in this sector is still fragile,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

The survey data were gathered between January 12 and 27, 2025.

Fibre2Fashion News Desk (SG)

India’s export community has welcomed the India–US trade deal, under which US tariffs on Indian-made products have been reduced from around 50 per cent to 18 per cent, calling it a historic milestone expected to trigger the immediate release of stalled export orders and accelerate growth across labour-intensive sectors.

The Federation of Indian Export Organisations (FIEO) said the sharp tariff reduction is likely to provide an instant boost to sectors such as apparel, textiles, leather and footwear, where global buyers typically finalise summer-season sourcing by December. With improved price parity, greater tariff certainty and renewed buyer confidence, exporters expect a rapid pick-up in orders over the coming months.

India’s exporters have welcomed the India–US trade deal, which cuts US tariffs on Indian goods from around 50 per cent to 18 per cent, saying it will immediately unlock stalled orders.
Industry bodies expect a rapid rebound in textile and apparel exports, improved competitiveness in the US market, renewed buyer confidence, fresh investments, and stronger job creation across labour-intensive sectors.

Hailing the agreement as the ‘Father of All Deals’, S C Ralhan, president, FIEO, said the trade pact marks a major step forward in strengthening bilateral economic ties. “The finalisation of the India–US Trade Deal and the reduction of US tariffs to 18 per cent on Indian-made products is a landmark achievement. It reflects the growing strategic and economic partnership between India and the United States and opens up vast opportunities for Indian exporters, particularly MSMEs,” he said.

Ralhan added that sectors including engineering goods, textiles and apparel, pharmaceuticals, chemicals, leather products, gems and jewellery, and agricultural products are expected to gain significantly. “Lower tariffs will enhance price competitiveness and help Indian exporters integrate more deeply into US supply chains. This will encourage capacity expansion, attract fresh investments and support job creation in export-oriented industries,” he noted.

The Southern India Mills’ Association (SIMA) said the rollback of the punitive US tariff has come as a major relief for India’s textile and clothing industry. SIMA noted that the sudden imposition of a 50 per cent tariff had severely disrupted the manufacturing value chain. SIMA chairman Durai Palanisamy said, “The reduction of the US tariff to 18 per cent, the lowest rate secured by any competing textile and clothing exporting nation, has restored confidence across the industry and is expected to improve India’s global competitiveness.” He added that the move, combined with India’s recent trade agreements with the US, the UK and Europe, is likely to revive export momentum and place the sector back on a sustainable growth path.

He said exporters, particularly in Tamil Nadu, were hit hard, with production levels falling by 30–70 per cent across several units and significant job losses following the tariff hike.

Anant Goenka, president, the Federation of Indian Chambers of Commerce & Industry (FICCI), said the agreement marks a significant reset in bilateral economic ties. “The reduction of reciprocal tariffs on Indian goods to 18 per cent, following months of negotiations, will materially improve the competitiveness of Indian exports in the world’s largest import market,” he said.

Goenka noted that sectors such as apparel, leather, gems and jewellery, and marine products are poised to benefit from the deal, which could strengthen business confidence and deepen economic engagement between the two countries. “If implemented effectively, the agreement can provide a meaningful boost to India’s export growth trajectory, broaden market access, and underscore the strategic importance of sustained cooperation between the world’s largest democracies,” he added.

Fibre2Fashion News Desk (KUL)

Following the decision by Marie-Laure Sauty de Chalon to not renew her mandate as director beyond twelve years, the LVMH Board of Directors, which met on January 27, 2026, decided after consulting with the Sustainability and Governance Committee, to propose the appointment of Ariane Gorin to the Board of Directors at the next Annual General Meeting to be held on April 23, 2026.

“I warmly thank Marie-Laure Sauty de Chalon for her valuable contributions to the Group over the past twelve years. Her recognized expertise in digital and on topics of governance and sustainability, her strategic vision, and her deep knowledge of the Group have been assets, enriching the discussions within the Board as well as the various Committees in which she participated.

LVMH will propose Ariane Gorin’s appointment to its board at the April 23, 2026 AGM after Marie-Laure Sauty de Chalon decided not to renew her mandate following twelve years.
Chairman and CEO Bernard Arnault praised Sauty de Chalon’s contributions and highlighted Gorin’s international experience and expertise in technology and travel as key strengths for the Group.

“I am delighted that Ariane Gorin has agreed to join our Board. Ariane Gorin is an experienced and visionary leader, whose ability to tackle complex challenges is widely recognized. Her remarkable international career, enriched by her dual French-American nationality, as well as her sharp expertise in the technology and travel sectors, will be of undeniable value in the coming years,” said Bernard Arnault, Chairman and CEO of the LVMH Group.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)