By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector economic activity in the 17-nation euro zone showed small but unexpected growth in January, according to preliminary data from a survey of purchasing managers released Tuesday. The preliminary Markit euro-zone composite purchasing managers index rose to 50.4 from 48.3 in December. A reading of less than 50 signals contraction, while a figure of more than 50 indicates growth. Economists had forecast a reading of 48.5. The services PMI rose to 50.5 from 48.8 in December, while the reading for the manufacturing sector rose to 48.7 from 46.9. The data indicates the economy has stabilized after contracting in the final quarter of 2011, said Chris Williamson, chief economist at Markit. The rebound largely reflected an upturn in Germany and very modest growth in France, while the rest of the region continued to suffer a steep downturn, he said.
