Euro zone business activity shrinks again as new Covid strains lead to more lockdowns

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The euro zone saw another drop in business activity in January, on the back of stricter coronavirus-related lockdowns.

slow vaccination roll-out"In this environment ample monetary stimulus remains essential," Lagarde said. The ECB decided at a meeting on Thursday tofor now, having boosted its support in December.

However, French businesses hired more employees in January — the first increase in job figures in almost a year. In Germany, business activity managed to grow slightly in January, with the flash composite output index coming in at 50.8. However, the reading represented a seven-month low for Europe's economic engine.

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