Economic activity in the euro area weakened in November 2020 amid a new lockdown due to the second wave of coronavirus. This is evidenced by IHS agency Markit, which calculates Purchasing Managers’ Index (PMI).
The indicator in November fell to 45.1 points from the level of 50 points in October. This is the lowest reading since May 2020, IHS Markit noted. “Business activity in the eurozone fell sharply in November as European countries adopted aggressive new measures to contain the spread of the coronavirus,” the report said.
In Germany, Europe’s main economy, the PMI index for the month fell from 55 points to 52 points. The indicator in France fell from 47.5 points to 39.9 points. In Italy, PMI decreased from 50 points to 45.1 points.
When the PMI falls below 50 points, it means a drop in business activity, when the value rises above this mark, the economy grows.