Euro zone services activity expanded at a slightly faster pace in February, according to the HCOB ‌euro zone services Purchasing Managers' Index. However, growth remained modest and firms barely added to headcount. The index rose to 51.9 from 51.6 in January, just above a preliminary estimate of 51.8. New business growth accelerated modestly, with providers reducing backlogs of work for a fourth consecutive month. However cost pressures increased sharply, with input price inflation matching January's 11-month high. Germany led the growth among major euro zone economies, while Italy and Spain saw activity slow. The overall composite PMI helped drive the overall eurozone to an all-encompassing three-month growth phase.