Mixed PMI Signals as Eurozone Activity Slows and US, Japan Reports Dip Below Expectations

The latest combined Purchasing Managers' Index (PMI) data from major economies show a mixed economic outlook. In December, the Eurozone's composite PMI for industrial and service sectors dropped significantly to 51.5 from 52.8 in November, according to official figures. While the index still indicates growth (above 50), the sharper-than-expected decline suggests a slowing momentum in the region.

Similarly, preliminary figures from the US and Japan revealed weaker-than-anticipated combined PMI readings, pointing to softer activity across both manufacturing and services. These developments highlight vulnerabilities amid a volatile global economy marked by rising bankruptcy risks and shifting trade dynamics.

Camilla Arwin, risk underwriting manager at Atradius Sweden, underscores the increasing challenges enterprises face in assessing credit risks reliably. Traditional credit checks fall short in the current environment, which is characterized by sudden liquidity changes, complex global supply chains, and the emergence of synthetic companies with deceptive financial histories. Atradius's use of AI-powered continuous monitoring and local expertise provides critical early warnings for payment risks, enabling companies to manage exposure proactively.

Arwin advocates for robust credit insurance and dynamic credit policies as essential tools for companies aiming to sustain growth and navigate market uncertainties. With bankruptcies expected to climb by 5% in 2026, such measures are increasingly vital for Swedish businesses involved in international trade.

Overall, the PMI data from the Eurozone, US, and Japan collectively reflect cautious sentiment and potential headwinds in global industrial and service sector performance going into the new year.