Eurozone composite PMI collapses to 13.2, business activity craters at record pace

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Eurozone composite PMI collapses to 13.2, business activity craters at record pace

On Wednesday, the 6th of May 2020, the IHS Markit’s final Composite PMI (Purchasing Managers’ Index) data for the eurozone released earlier on the day had unfurled a staggering outlook with a bundle of dismal economic data, as business activities in Europe fell across the board last month after the forced-lockdown measures adopted by a gauge of European Governments, had shut down factories, restaurants and many travel and tourism activities, eventually grounded all businesses activities to a tattering halt.

Besides, according to IHS Markit’s final composite PMI data for the Eurozone, widely seen as a stark indicator of the bloc’s economic health, had dived to a record 13.6 last month from a dire reading of 29.7 a month earlier, remarking the index’s lowest level since the beginning of the survey back in the 1998s.

Meanwhile, as the pandemic-led depression appears to be wreaking havocs on the bloc’s economy, other European economic data released on Wednesday (May 6th) had also signalled a deeper recession what analysts said could take up to two years to recover, while Germany’s factory orders had pummelled to -15.6% from -1.2% a month earlier, Swedish service sector PMI fell to 39.0 from an earlier 46.1, Spain’s tourism and leisure activities tottered to -64.3% from an earlier 1% on an annualized basis and Markit’s service sector PMI had dived to 7.1 from 23 a month earlier.

Elsewhere in the Europe, Markit’s services sector PMI of Italy and France had dived to 10.8 and 10.2 respectively, shrinking at their steepest pace in more than two decades, while the UK’s construction PMI had pummelled to 8.2 from a reading of 39.3 a month earlier.

Amid such slanderous reflection of the eurozone economy which seems to be falling from the blues too quickly to grapple with, referring to Germany’s services sector PMI which had reported its weakest ever reading on record, a Berenberg economist, Holger Schmieding said on Wednesday (May 6th), “The picture is dire.

The overall view is that Germany is bad, Southern Europe looks even worse. Manufacturing is badly affected but not as bad as services. ”