Latest data released by Markit - 4 November 2020
- Prior 42.4
- Composite PMI 44.1 vs 43.0 expected
- Prior 44.3
The headline print is slightly better than expected but it still reaffirms a continued slowdown amid a resurgence in the virus across the region. Economic activity is expected to fall further going into November and that's not a good look on the Q4 outlook in Europe.
Markit notes that:
"The latest PMI data continue to raise the spectre of the dreaded double dip, with output in the services economy clearly struggling in the face of increasing COVID-19 infections, tighter restrictions on activity and general worries amongst consumers regarding the circulation of the virus.
"Not surprisingly, the impact is greatest amongst Hotels & Restaurants where COVID-19 restrictions and a lack of domestic and international demand is having a severe and adverse effect on activity.
"Although companies are positive that once the pandemic has been brought under control activity will rise sharply, the near-term remains highly uncertain. Firms are subsequently trying to keep a tight reign on costs especially given ongoing margin pressures and the existence of excess capacity at their units."
