Economics
Recession Deepens in Europe’s South Amid Lockdown Damage
- Italy services PMI dropped to 10.8; Spain’s gauge fell to 7.1
- Overall euro area reading slightly better at 13.6 for April
A pedestrian walks past a closed tapas bar, left, and restaurant in Madrid.
Photographer: Angel Navarrete/BloombergThis article is for subscribers only.
Italy and Spain, the two European countries most severely hit by the coronavirus, are suffering even deeper slumps after record contractions in the first quarter.
Lockdowns that shut hotels and restaurants meant companies experienced unprecedented declines in output and new orders in April, according to IHS Markit’s Purchasing Managers’ Surveys. Jobs were also cut at the fastest pace in the index’s 22 years.