Euro-Area Manufacturing, Services Show Recovery Signs: Economy

European services and factory output strengthened in January, led by a “robust” performance by Germany, as the region’s leaders work to find a solution to the debt crisis.

A euro-area composite index based on a survey of purchasing managers in both industries rose to 50.4, a five-month high, from 48.3 in December, London-based Markit Economics said in a report today. Still, incoming new business fell and the increase in output was partly due to companies reducing order backlogs.