At the fastest monthly rate in the last two decades, the business activity in eurozone in July, as the easing of more restrictive measures gave a new impetus to the services sector, according to a survey. However, fears of a new wave have hit business confidence.
According to the Athenian-Macedonian News Agency, with vaccination rates accelerating and the burden on health services declining, governments were some of the restrictions imposed in an effort to stem the spread of the virus, freeing up demand. .
THE Preliminary Combined Procurement Index (PMI) Markit, which is considered a good indicator of the state of the economy, climbed to 60.6 points in July from 59.5, its highest level since June 2000. The price is above the limit of 50 points that separates growth from shrinkage as well as higher than the 60.0 points forecast by analysts in a Reuters survey.
“The eurozone is experiencing a summer boom in growth as easing restrictions on tackling the virus in July have boosted growth at the fastest pace in 21 years,” said Chris Williamson, chief economist at IHS Markit.
“Especially the services sector is experiencing the freedom from easing Covid-19 containment measures and improving vaccination rates, especially in hospitality, travel and tourism.”
The PMI index
The PMI covering the services sector jumped to 60.4 points from 58.3, the highest level since January 2006 and higher than the 59.5 analysts forecast in a Reuters survey.
The manufacturing PMI fell slightly from a record 63.4 points in June to 62.6. The production index fell to 60.9 from 62.6 points.
However, the proliferation of the highly contagious Delta strain of coronavirus further affected supply chains that have already been disrupted and led to a jump in prices for raw materials needed by factories. The input price index remained at the record level of June at 88.5 points.
Rising cases and fears of another wave of pandemics have affected overall confidence. The composite index of future production fell to 67.8 from 71.9 points, the lowest level since February.
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