Euro zone business activity shrinks to six month low after new coronavirus lockdowns

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The flash euro zone PMI composite output index came in at 45.1 in November — the lowest reading in six months.

The economic shock was once again felt mostly in the services sector with non-essential shops closed, curfews and restrictions on movement.

The Champs-Elysees Avenue and the Arc de Triomphe are seen after the Christmas illuminations were switched on in Paris, France, Nov. 22, 2020.LONDON — Economic activity in the euro zone sank once again in November after governments introduced new lockdowns and social restrictions to contain further spreading of theHowever, news that a Covid-19 vaccine might soon be ready for distribution has made businesses more confident about returning to their normal activity levels in the next 12 months.

Economic activity in France dropped to a six-month low in November on the back of the re-imposition of a national lockdown. However, the economic shock was less severe to the one caused by the first shutdown in spring. The German flash PMI composite output index stood at 52 in November — the lowest in five months but nonetheless a positive reading.

 

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