Eurozone economic activity contracts amid COVID-19 resurgence

Economic activity in the European continent contracted once more in October as the resurgence of COVID-19 cases across the region had many worried for recession in the Eurozone, according to a survey revealed on Friday.

The reimplementation of lockdown measures had forced many businesses in the bloc’s dominant service industry to limit operations, with nearly 90% of economists in a Reuters poll forecasting the pandemic to completely halt economic recovery.

IHS Markit’s Flash Composite Purchasing Managers’ Index fell to 49.4 from September’s final reading of 50.4, only fractionally better than the 49.3 predicted in a Reuters poll.

That headline PMI was dragged down by the service industry’s PMI, which sank more than expected to 46.2 from 48.0.

Meanwhile, Britain’s economic recovery also lost steam as restrictions hit businesses in the hospitality and transport sectors.