Euro zone business activity stable in December despite Covid lockdowns

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Business activity in the euro zone picked up in December, according to the latest preliminary purchasing manager's index (PMI) data for the region.

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The flash euro zone PMI composite output index, which looks at activity in both manufacturing and services sectors, came in at 49.8 in December, up from 45.3 in November.A general view of the cafes at the empty Leidseplein square on March 27, 2020 in Amsterdam, NetherlandsLONDON — Business activity in the euro zone is having a fairly robust December, according to the latest preliminary purchasing manager's index data for the region.

The flash euro zone PMI composite output index, which looks at activity in both manufacturing and services sectors, came in at 49.8 in December, up from 45.3 in November. A reading below 50 still indicates a contraction in business activity, however. Commenting on the flash PMI data, Chief Business Economist at IHS Markit Chris Williamson noted that "the euro zone economy is faring better than expected in December."

"The data hint at the economy close to stabilizing after having plunged back into a severe decline in November amid renewed Covid-19 lockdown measures. The fourth quarter downturn consequently looks far less steep than the hit from the pandemic seen earlier in the year, though the picture is very mixed by sector."

 

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