Euro-zone manufacturing contraction eased in Jan

Activity in the 17-nation euro zone's manufacturing sector continued to shrink in January, but contracted at the slowest pace in 11 months, according to Markit's final January purchasing-managers' index for the sector released Friday. The index rose to 47.9 from 46.1 in December, coming in above an earlier estimate of 47.5. A reading of less than 50 signals shrinking activity. Germany, Europe's largest economy, saw its manufacturing PMI rise to 49.8, an 11-month high, while France sank to a four-month low at 42.9. Spain notched a 19-month high at 46.1. "While the industrial sector looks likely to have acted as a drag on the euro-zone economy in the final quarter of last year, deepening the double-dip downturn, the PMI provides hope that the first quarter could mark the start of a turnaround," said Chris Williamson, chief economist at Markit.