Latest data released by Markit/BME - 3 April 2020

  • Composite PMI 35.0 vs 37.2 prelim

The preliminary report can be found here. The revision lower reaffirms a record low for the services reading as the entire euro area economy has been slammed down hard by the virus outbreak and related measures to restrict the spread.

The details show a record fall in activity, new business and employment while business confidence collapses to a record low. Markit notes that:

"The unprecedented drop in services business activity in March makes the impact of the COVID-19 pandemic and resulting efforts to contain the spread of the virus all too clear. The damage to the economy has been abrupt and widespread, with those sectors hit particularly hard by social distancing and other containment measures, such as hotels and restaurants, coming to a complete standstill.

"Lockdowns began earlier in the other big-three eurozone countries, where PMI data have signalled even steeper declines in services activity in March. Germany's economy is somewhat shielded by a lesser reliance on travel and tourism - and consumer services in general - though it does have a relative weakness in its greater exposure to import and export disruption.

"The extent of the job losses highlighted by the survey data mean we can expect to see the first discernible increase in Germany's unemployment rate since the global financial crisis. The hope is, however, that extensive use of the government's short-time work scheme can save some jobs that would have otherwise been lost and support incomes during the downturn."