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1/22, 10:01 AM (Source: TeleTrader)
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Eurozone manufacturing PMI at 2-month low in Jan

Manufacturing activity in the Eurozone stalled in January, with the Purchasing Managers Index (PMI) dropping in line with the estimates to 54.7, marking its two-month low, the IHS Markit revealed in its preliminary report published on Friday. The Manufacturing Output Index also declined in comparison to December to 54.5, reaching its seven-month low.

The Services Activity Index and the Composite Output Index both landed at their two-month lows of 45.0 and 47.5, respectively. The report noted the recovery from the crisis caused by the spread of coronavirus had slowed down "as companies continued to struggle amid the ongoing pandemic and related restrictions" and due to "weaker demand growth from both corporate and consumer clients."

"A double-dip recession for the Eurozone economy is looking increasingly inevitable as tighter COVID-19 restrictions took a further toll on businesses in January. Output fell at an increased rate [...] to the lowest seen so far in the sector's seven-month recovery," IHS Markit Chief Business Economist Chris Williamson commented on the results.

Breaking the News / JR