Economics

Euro-Area Services Slump Eased Before New German Lockdown

Germany, Europe’s largest economy, is now shut down until at least Jan. 10.

Photographer: Alex Kraus/Bloomberg
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Euro-area services came close to stabilizing in the first half of December -- a trend likely to be short-lived after most German stores were ordered to close for the rest of the year.

An IHS Markit survey of Purchasing Managers suggests a slump triggered by partial lockdowns to rein in the coronavirus was starting to level off ahead of the Christmas holidays. Paired with a pickup in manufacturing, that helped to lift a composite gauge of activity to 49.8, just short of the threshold dividing expansion from contraction.