LONDON, Feb 1 Reuters The downturn in euro zone factory activity eased for a third month in January but could stretch through this quarter, according to a survey on Thursday that showed a majority of subindices remained within the contraction zone.

HCOB39;s final euro zone manufacturing Purchasing Managers39; Index PMI, compiled by SP Global, climbed to 46.6 in January from December39;s 44.4, matching a preliminary estimate, but still firmly below the 50 mark separating growth in activity from contraction.

An index measuring output, which feeds into a composite PMI due on Monday and is seen as a good gauge of economic health, jumped to 46.6 from December39;s final reading of 44.4, in line with the flash estimate.

For those with a glasshalffull perspective, the set of manufacturing PMI indicators offers a dose of optimism. Firstly, the headline PMI has marked three consecutive months of increase, a trend mirrored in the forwardlooking indicator for new orders, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

Secondly, there is a broadbased upward trend in subindicators, encompassing stock of purchases, backlogs of work, and output.

Almost all subindices moved in a positive direction while those covering pricing showed inflationary pressures may have weakened last month.

That would likely be welcomed by policymakers at the European Central Bank who last week left interest rates at record highs and reaffirmed their commitment to fighting inflation….