Economics
Europe’s Economic Recovery Stumbles After Initial Bounceback
- Composite PMI drops to 51.6 in August from 54.9 in July
- ‘The euro zone stands at a crossroads’: IHS Markit’s Harker
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The euro-area economy unexpectedly lost momentum this month after a resurgence of coronavirus cases forced new restrictions, highlighting the challenge of rekindling growth while the pandemic remains untamed.
The sharp slowdown -- driven by services -- shows that the escape from recession won’t be plain sailing, and undermines lingering hopes for a V-shaped recovery. While infections are approaching levels recorded during strict lockdowns earlier this year, governments are so far reluctant to re-impose those measures.