The preliminary Eurozone manufacturing PMI index has fallen to 58 in December from 58.4 points in November, although it improves the 57.8 expected by the market. In any case, this is the weakest result seen by the indicator in ten months, since February.
The Preliminary Services PMI has also given ground, falling to 53.3 from the previous 55.9, further disappointing the 54.1 estimates. This is the weakest figure seen in eight months, since April.
According to the statement from IHS Markit, the The pace of economic growth in the euro area slowed in December as rising rates of COVID-19 infection affected service sector activity, This offset the improvement in manufacturing growth amid easing supply delays. Company costs and average selling prices continued to rise dramatically, although rates of increase cooled from all-time highs in November.
Chris Williamson, IHS Markit Chief Business Economist, said: “The eurozone economy is taking another hit from COVID-19, with rising infection levels holding back growth in the services sector in particular to result in a disappointing end of 2021 Germany is being hit particularly hard as the economy stagnates for the first time in a year and a half, but the growth slowdown is widespread across the region. “
“The stimulus is coming from the manufacturing sector, where tension in supply chains is showing some signs of easing, which in turn is helping to revive industrial production. In particular, car production has increased for the first time since August.” Williamson added.
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