LONDON (UK) – A survey on Friday said the dip in euro zone business activity triggered by lockdowns eased sharply in June as more businesses reopened.
Despite 11 million people getting infected by coronavirus across the world, the dip in the number of daily infections across Europe has prompted governments to loosen curbs on the movement of people.
The European Central Bank expanded its pandemic-related bond purchases to touch 1.35 trillion euros last month to support ravaged economies.
This move appears to be paying dividends as IHS Markit’s final Composite Purchasing Managers’ Index (PMI) climbed to 48.5 in June from 31.9 in May. It is better than a 47.5 preliminary reading and edges close to the 50-mark separating growth from contraction.
“The sharp increases in the euro zone PMIs in June suggest that activity is bouncing back quite quickly, but remains far lower than before the crisis,” said Jack Allen-Reynolds at Capital Economics.
(Photos syndicated via Reuters)
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