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Eurozone Business Growth Hits 11-Month Low as Omicron Hard-Hit Services

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Medical face mask with money, black background. World coronavirus economic losses concept. Concept of financial impact of covid-19 on European money area. Euros and coins.

Economic growth in the eurozone slowed down in January, as new Covid-19 restrictions hurt consumer spending, raising a new obstacle for the region’s recovery.

Source: IHS Markit

Euro Stoxx 50 down -2.07%, EUR USD down -0.21%

IHS Markit stated that the deceleration was fully attributable to the services sector, with manufacturing posting recovery due to the easing supply challenges and a boost in activity.

The Purchasing Managers’ Index (PMI) from IHS Markit plunged to 52.4 in January after posting 53.3 points in December and reaching a high of 59 points in August.

The monthly flash PMI estimate of activity from HIS Markit posted a two-speed recovery with a slowing down supply-chain bottlenecks for manufacturing offset by struggling service companies.

Chris Williamson, HIS Markit’s chief business economist, stated that tourism, travel, and recreation were hard-hit.

The four biggest economies in the EU  — Germany, France, Italy, and Spain —  tightened restrictions in recent weeks.

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