Economics
Europe’s Economy Risks New Contraction From Virus Curbs
- Composite PMI fell to four-month low of 49.4 in October
- Renewed weakness strengthens case for more ECB stimulus
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The resurgence of the coronavirus has knocked Europe’s economic recovery back a step and raised the possibility of another contraction.
IHS Markit’s monthly measure of business activity fell to a four-month low of 49.4 in October from 50.4 in September. Within the report is a clear, divergent trend of manufacturing strength being offset by damage to services from the second wave of the pandemic.