PARIS, January 5 (Reuters) – Main final results of Markit surveys of purchasing managers in the service sector in Europe, released on Wednesday:
EURO ZONE – THE PANDEMIC HAS WEIGHTED ON ACTIVITY
LONDON – The eurozone’s economic recovery faltered in December due to the upsurge in coronavirus contaminations, the final results of the IHS Markit investigation show.
The composite PMI activity index, considered a good barometer of the health of the economy, fell to 53.3, its lowest level since March, after 55.4 in November.
The services sector PMI index fell to its lowest in eight months, to 53.1 against 55.9 in November and 53.3 in first estimate.
“The acceleration of growth recorded in the euro zone in November unfortunately turned out to be fleeting (..) Having rekindled a climate of uncertainty and encouraged consumers to limit their spending, the emergence and spread of the new Omicron variant have had a particularly severe impact on the service sector, “said Joe Hayes, senior economist at IHS Markit.
“The various countries of the euro zone now having to face the current evolution of the pandemic, the downside risks weighing on the economy of the region have clearly increased,” he continued.
GERMANY – PRIVATE SECTOR ACTIVITY IN CONTRACTION
BERLIN – Restrictions to contain the spread of the coronavirus dampened activity in the service sector in Germany last month and concerns over the Omicron variant weighed on the outlook for January.
The composite PMI index calculated by IHS Markit with purchasing managers, which brings together the manufacturing and service sectors, rose to 49.9 in December after 52.7 in November and 50.0 in a “flash” estimate.
Passing below the threshold of 50, it goes into contraction territory.
Services activity also contracted with an index of 48.7 in December against 52.7 in November and 48.4 in first estimate.
“The decline in activity has been only modest but with the additional restrictions that have come into effect and the Omicron variant, there are new risks of downturn in activity in January,” said Phil Smith, director economic partner at IHS Markit.
FRANCE – THE RECOVERY SLOWS DOWN WITH THE OMICRON VARIANT
PARIS – Growth in business activity in the private sector slowed in December, due in part to the Omicron variant of the coronavirus, final results of IHS Markit surveys of purchasing managers (PMI) show.
The composite PMI index, which includes the manufacturing and services sector, fell to 55.8 in December from 56.1 in November when the first estimate put it at 55.6.
The services PMI stood at 57 from 57.4 the previous month.
“The activity of service providers recorded its second strongest monthly growth since last June, barely lower than that observed in November. Demand for services remained strong in December, leading to an accumulation of backlogs. and motivated companies to increase their workforce again, ”said Joe Hayes, senior economist at IHS Markit.
“Despite its still marked pace, new business growth slowed in December, hampered by a notable drop in demand from foreign markets, linked to the impact on tourism of the resurgence of COVID-19 cases”, he added.
(Reuters European Offices, French version Laetitia Volga, edited by Blandine Hénault)