Business activity in the Eurozone almost stabilized in December as growing manufacturing output covered for a continuous decrease in service sector activity, the IHS Markit data provider said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 16th December, 2020) Business activity in the Eurozone almost stabilized in December as growing manufacturing output covered for a continuous decrease in service sector activity, the IHS Markit data provider said on Wednesday.
According to the company, its Purchasing Managers' Index (PMI) for the Eurozone rose to 49.8 from November's 45.3. The manufacturing sector's output registered a score of 56.6 in December, up from 55.3 in the last month. The PMI index for services activity is at 47.3, compared to 41.7 in November. Any score over 50 indicates that a majority of businesses noted an expansion in activity when compared to the previous month.
"Eurozone business activity came close to stabilising in December as stronger manufacturing output growth helped to counter a further drop in service sector activity," IHS Markit said in a statement.
The company added that future output expectations have spiked to a 32-month high amid positive reports about the development of COVID-19 vaccines.
"Business expectations about output in the coming 12 months rose to the highest since April 2018. Sentiment about future prospects hit a 27-month high in the service sector and a 34-month high in manufacturing," the firm stated.
In November, AstraZeneca, Moderna and Pfizer published reports on Phase 3 trial results of their vaccines, prompting a wave of optimism about prospects for the next year.
As the COVID-19 epidemic unfolded, many countries have adopted severe restrictions to stop the virus from spreading, undermining their economies in the process. To counter the deleterious economic ramifications of the disease, the EU plans to set up a recovery fund of about 750 billion Euros ($915 billion).
