Eurozone economic growth lost more steam in January as the bloc’s dominant services sector struggled from subdued demand on tighter restrictions to contain the Omicron variant.
Source: IHS Markit
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Some governments in the currency union have pushed citizens to stay at home to prevent the spread of the more virulent variant as increasing steep prices kept demand in control.
IHS Markit’s Final Composite Purchasing Managers’ Index, a measure of the overall economic health, fell to 52.3 in January from 53.3 in December, its lowest level since February.
Chris Williamson, the chief business economist at IHS Markit, stated that the eurozone economy had eased further in January after growth weakened in the final quarter of 2021.
These measures had a significant impact on the services industry, and its PMI dropped to a nine-month low of 51.1 from December’s 53.1.
Demand growth almost collapsed, and the services new business index plunged to 51.3 from 52.5, its lowest level since April.