The rebound in Eurozone’s manufacturing activity faltered in August, surveys of Purchasing Managers’ Index (PMI) showed. The number of COVID-19 infections continues to rise, with some countries reimposing restrictions to contain the virus spread. The bloc’s economy contracted 12.1% in the last quarter as businesses shut, and customers were told to stay at home.
According to the survey, Eurozone’s manufacturing PMI fell from 54.9 in July to 51.9 last month. The index is close to the neutral 50-point threshold separating growth and contraction. The survey found that demand remained weak in the region although producers cut prices. Unemployment rates also increased for a sixth consecutive month.
The service sector, which dominates the bloc’s economy, suffered from an even more severe downturn. The PMI index for Eurozone’s service industry sank from 54.7 to 50.5 over July-August. France’s service sector grew at a slower pace last month, while German service industry fell but stayed relatively healthy. Meanwhile, service PMI for Italy and Spain slipped back to below the 50-point mark as travel restrictions hurt their tourism industry.
