11/23/2020, 10:02 AM (Source: TeleTrader)
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Eurozone business activity drops in November

Eurozone business activity fell sharply in November according to a release by IHS Markit on Monday. The flash Eurozone Composite Purchasing Managers’ Index (PMI) dropped from 50.0 in October to 45.1, the lowest point since May. The fall was mainly attributed to the European Union member states' efforts to curb the coronavirus pandemic by introducing harsher lockdown measures.

The services industry was the hardest hit, with output falling for the third month in a row and the rate of decline accelerating sharply to the fastest since May. In manufacturing, output growth slowed to the lowest since July.

The composite PMI in France sank to 39.9 from 47.5. Germany's business activity continued to expand, although it dropped from 55.0 in October to 52.0 in November.

"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," Chris Williamson, chief business economist at IHS Markit said. "Importantly, however, the further downturn of the economy signaled 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."

Breaking the News / DJ