LONDON (Reuters) – The eurozone economy is almost certainly in a double whammy as COVID-19 lockouts continue to hit the services industry, but hopes for wider vaccine distribution have shifted hopes to peak three years, a study showed Wednesday.
The IHS Markit Combined Purchasing Managers Index in February (PMI) in February, which was seen as a good measure of economic health, rose to 48.8 from 47.8 in January, above a flash reading of 48.1 but firmly below the 50 mark. separating growth from shortening.
This increase was largely due to near-high growth in manufacturing as factories in the 19 countries that use the euro have remained largely open after restrictions were imposed. restore to prevent high coronavirus cases. Governments have forced hospitality and entertainment venues to remain closed and encouraged citizens to stay at home.
“The small revision up to the Eurozone’s Integrated PMI for February still leaves it consistent with another cut in GDP in Q1,” said Jessica Hinds at Capital Economics.
The eurozone economy gained a contract in the first two quarters of 2020 and a Reuters poll of economists last month predicts that it will do so again in Q4 and in the current quarter, saying risks to the already weak outlook had been mitigated. [ECILT/EU]
They cited delays in EU vaccine distribution, concerns about new coronavirus changes supporting conventional lockouts, a halt in economic activity and rising unemployment as serious threats.
The services sector in Germany, the largest economy in Europe, continued to suffer from extended coronavirus lockout while French industrial activity fell to a three-month low. Spanish and Italian service sectors saw activity decline again.
In Britain, outside the euro zone and the European Union, economic output stood after a sharp fall in the previous January, its PMI showed, just hours before finance minister Rishi Sunak is to outline his economic plans for next year.
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PMI for the euro zone ‘s core services industry, mostly affected by locks, rose to 45.7 last month, ahead of 45.4 in January and the flash estimate of 44.7 but still well below the balance.
Demand fell for the seventh month, despite companies cutting their prices, but service businesses raised the number of people – albeit only slightly – for the first time since February last year. last year, just before Europe noticed the first wave of the pandemic.
The services’ employment index rose to 50.2 from 49.8.
The EU’s inclusion campaign has been hampered by cuts in promised deliveries, delays in dispersal and some social aggression but these are expected to be finalized and the agenda- future yield target, which measures optimism, kicked to 67.0 from 64.2.
“The slow spread of vaccines and rising numbers of cases in France and Italy mean that the lifting of restrictions is likely to be delayed, pushing much of the vaccine-related kick into Q3,” said Hinds.
Reciting with Jonathan Cable; Edited by Catherine Evans