Markit purchasing managers index down 4.9 to 45.1 points
The euro zone is threatened with a relapse into recession due to the second corona wave. The purchasing managers index, which combines industry and service providers, fell by 4.9 to 45.1 points in November. This is the worst value in six months, as the IHS Markit institute announced in its monthly survey of thousands of companies. The barometer slipped well below the 50 mark, above which it signals growth.
“Due to the new measures to contain the corona infection numbers, the euro zone slipped into a serious crisis again in November,” said Markit chief economist Chris Williamson. This increases the likelihood that gross domestic product will shrink in the current fourth quarter.
The measures taken by governments in the fight against the spread of the corona have once again hit the service providers the hardest, and in particular companies from consumer-related sectors and the hospitality industry. “However, the weak demand has also had a negative impact on the industrial sector,” said Williamson. “Nonetheless, the manufacturing industry remains a ray of hope.”
It was particularly hard for France, where the government had imposed a tough lockdown due to the many corona infections: In the second largest economy in the monetary union, the purchasing managers index slipped to 39.9 points. In Germany, the economy also cooled in the middle of the partial lockdown, but the barometer with a value of 52.0 points still signals robust growth – mainly because of industry.
