-1.3 C
New York
Sunday, March 7, 2021

Euro zone economic recovery floundered in Sept as services struggled: PMI

Must read

NHS England invites people aged 56 to 59 to book COVID-19 vaccinations in coming week

Coronavirus12 minutes ago (Mar 06, 2021 11:30PM ET) ...

Spring training roundup: Mets, deGrom get past Astros

Sports & General16 minutes ago (Mar 06, 2021 11:26PM ET) ...

Nothing the stock market does ever scares its retail daredevils

By Sarah PonczekApple Inc. has slumped 15% since late January. Tesla Inc. has lost more than a quarter-trillion dollars in market value in three...
imageEconomic Indicators34 minutes ago (Oct 05, 2020 04:10AM ET)

(C) Reuters. FILE PHOTO: Employees pick up the pizzas near an IPad with the “Funky Pay” app, at Funky Pizza restaurant, where the app replaces waiters, in Palafrugell

LONDON (Reuters) – The euro zone’s economic recovery faltered in September as the reimposition of some restrictions on activity to halt a resurgence in the coronavirus sent the bloc’s dominant service sector into reverse, a survey showed.

Rising infection rates in the region, something a Reuters poll said last month was the biggest threat to the recovery, will concern policymakers who had hoped the bloc’s economy was healing after contracting an historic 11.8% in the second quarter. [ECILT/EU]

To support the economy, the European Central Bank plans to make 1.35 trillion euros of pandemic-related additional asset purchases and the European Union has announced a 750 billion euro recovery fund due to kick in next year.

But that didn’t stop IHS Markit’s final composite Purchasing Managers’ Index, seen as a good barometer of economic health, falling to 50.4 in September from August’s 51.9, close to the 50 mark separating growth from contraction.

It was dragged down by the PMI for services industries, which accounts for around two thirds of GDP, which slumped to 48.0 from August’s 50.5, albeit slightly better than a preliminary 47.6 estimate.

“With the euro zone economy having almost stalled in September, the chances of a renewed downturn in the fourth quarter have clearly risen,” said Chris Williamson, chief business economist at IHS Markit.

“Much will depend on whether second waves of virus infections can be controlled, and whether social distancing restrictions can therefore be loosened to allow service sector activity to pick up again.”

Suggesting any pick up may take some time, demand for services fell in September and firms cut headcount for a seventh month. The new business index fell to 48.1 from 49.8.

Still, optimism about the coming year improved to levels not seen since before Europe felt the full brunt of the pandemic. The composite future output index rose to 60.5 from 57.8, its highest since February.

Euro zone economic recovery floundered in Sept as services struggled: PMI

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -

Latest article

NHS England invites people aged 56 to 59 to book COVID-19 vaccinations in coming week

Coronavirus12 minutes ago (Mar 06, 2021 11:30PM ET) ...

Spring training roundup: Mets, deGrom get past Astros

Sports & General16 minutes ago (Mar 06, 2021 11:26PM ET) ...

Nothing the stock market does ever scares its retail daredevils

By Sarah PonczekApple Inc. has slumped 15% since late January. Tesla Inc. has lost more than a quarter-trillion dollars in market value in three...

Protesters back on Myanmar streets after night raids by security forces

World18 minutes ago (Mar 06, 2021 10:25PM ET) ...