European private sector economy sees rising productivity in January

The EU's private sector economy saw a rise in productivity during the last month, according to new research from Markit.

Figures from the analyst's EU Productivity Purchasing Managers' Index (PMI) show a rise from 48.8 in December 2011 to 50.2 in January 2012, representing the first increase in six months.

This was only just above the index level representing stagnation, but nevertheless indicates a positive development, as the PMI had been at its lowest level since March 2009 during both November and December.

Output per worker among service providers rose for the first time since August, while the reduction in productivity among manufacturing units was the slowest since the current seven-month period of contraction began.

The strongest gains were seen in the telecommunications sector, while the IT industry was the field where the most pronounced decline was observed.

It comes at a time when EU businesses are being affected by the ongoing sovereign debt crisis, with a recent Edelman report suggesting the issue is eroding trust in regional businesses.