Eurozone November flash services PMI 41.3 vs 42.0 expected
Latest data released by Markit - 23 November 2020
The tighter restrictions imposed across the region in recent weeks is leading the downturn in business activity, although manufacturing conditions are not experiencing a major decline as seen in services; though the bulk of that is carried by Germany.
Markit notes that:
"The eurozone economy has plunged back into a severe decline in November amid renewed efforts to quash the rising tide of COVID-19 infections. The data add to the likelihood that the euro area will see GDP contract again in the fourth quarter.
"The service sector has once again been the hardest hit, especially consumer-facing and hospitality businesses, though weakened demand has also taken a toll on manufacturing.
"The factory sector nevertheless remains something of a bright spot, with factories in Germany continuing to show especially encouraging resilience, led by a further surge in demand.
"Firms across both manufacturing and services have also become more optimistic about the year ahead, largely reflecting growing hopes that the recent encouraging news on vaccines will allow life to return to normal in the new year.
"Importantly, however, the further downturn of the economy signalled for the fourth quarter represents a major set-back to the region's health and extends the recovery period. After a 7.4% contraction of GDP in 2020, we are expecting only a 3.7% expansion in 2021."