LAST UPDATE 11:31
Eurozone business growth has slowed more than expected this month as new restrictions on Omicron slow the recovery of the services sector.
Europe is facing a fourth wave of infections and many governments are encouraging citizens to stay home and avoid unnecessary social contact.
IHS Markit’s composite PMI fell to 53.4 points in December from 55.4 points in November, the lowest level since March and below estimates for 54 points.
The decline is mainly attributed to the decline of the PMI services to a low of eight months, at 53.3 points from 55.9 points.
Estimates spoke of a drop to 54.1 points.
“The eurozone economy is receiving another blow from the coronavirus, with rising levels of cases affecting growth in services in particular, culminating in a disappointing end to 2021,” said IHS Markit chief economist Chris Williamson.
Growth in services fell to its lowest level since April – when it shrank – with the new business index falling to 52.6 from 54.2 points.
The factories, which were generally less affected by the coronavirus restrictions, also suffered some problems and the manufacturing PMI fell to a 10-month low of 58 from 58.4 in November.
The index that measures production rose to 53.9 from 53.8 points.
Price pressures remained high. The import price index stood at 87 out of 89 points and the producer price index fell even more.
“The easing of supply constraints has mitigated some of the upward pressure on inflation,” Williamson said.
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Source From: Capital
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