Eurozone PMI Services was finalized at 45.7 in February, up slightly from January’s 45.4. PMI Composite was finalized at 48.8, up from January’s 47.8. Looking at some member states, Italy PMI Composite rose to 7-month high at 51.4. Germany came in at 51.1.. France dropped to 3-month low at 47.0. Spain and Ireland were also in contraction, at 45.1 and 42.7 respectively.
Chris Williamson, Chief Business Economist at IHS Markit said: “A fourth successive monthly drop in business activity puts the eurozone economy on course for a double-dip recession… it’s becoming clear that many virus-fighting measures will need to be in place for some time to come, in part due to the slow vaccine roll-out. This could extend the drag on the economy from the pandemic into the second half of the year and subdue the pace of recovery.
“A key question will be the extent to which these containment measures will limit the supply of goods and services at a time of recovering demand, as this will in turn determine pricing power in coming months and affect how long the current bout of sharply rising prices will persist.”
