The euro zone’s economic recovery eased in December as a resurgence of new COVID-19 variant infections hampered growth in the bloc’s dominant service industry.
Source: IHS Markit
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As the Omicron variant spread faster at the end of 2021, governments reimposed tighter measures to curb infection rates, more so in Germany.
IHS Markit’s Composite Purchasing Managers’ Index (PMI), a measure of overall economic health, plunged to 53.3 in December from 55.4 in November.
Joe Hayes, senior economist at IHS Markit stated that the accelerated expansion in output recorded in November was only temporary.
Hayes further stated that the spread of the Omicron variant had a significant impact on the services sector, signaling renewed reluctance among customers.
A PMI tracking the service industry fell to an eight-month low of 53.1 from November’s 55.9.
A factory PMI revealed that manufacturing activity remained solid in December, signaling an easing of supply chain constraints increased some price pressures.