Euro zone economy performed better than expected in December
Friday, 12 18 2020, Category: Economy, Country: Europe
The euro zone economy performed much better than expected this month - although it still contracted slightly - as a second wave of coronavirus infections and renewed lockdowns had less of an impact than earlier in the year, a survey showed.
Manufacturers reported strong growth, fuelled by rising exports and a booming performance from Germany, but the services industry remained in decline amid ongoing social distancing restrictions.
IHS Markit’s flash composite PMI, seen as a good guide to economic health, soared to 49.8 in December from November’s 45.3, just shy of the 50 mark separating growth from contraction. A Reuters poll had predicted a much shallower rise to 45.8.
“The data hint at the economy close to stabilising after having plunged back into a severe decline in November amid renewed COVID-19 lockdown measures,” said Chris Williamson, chief business economist at IHS Markit.