Categories: Market Overview

Eurozone business activity shrinks once more as Covid second wave surges

Economic activity in the euro zone shrunk in October as coronavirus restrictions returned to the region, preliminary data showed on Friday. The flash euro zone PMI composite output index, which looks at activity in both manufacturing and services sectors, dropped to a four-month low in October to 49.4, versus 50.4 in September. A reading below 50 represents a contraction in activity.

The latest numbers coincided with a period of new restrictions across the euro zone as it grapples with a second wave of coronavirus infections. France introduced new curfews last week and decided to expand them to more regions on Thursday, meaning that restaurants and bars in cities such as Paris, Marseille and Lyon have to close at 9 p.m. local time. On Thursday, French authorities reported the highest ever number of new daily infections.

France’s composite output index came in at 47.3 in October, a five-month low, in comparison with 48.5 in September.

Euro zone business activity shrinks once more as Covid second wave surges, CNBC, Oct 23

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