Skip to content
Subscriber Only
Markets
Economics

Euro-Area Economy Weakened by Lockdowns, Supply Constraints

  • Region’s factories have been a stronghold through the crisis
  • Firms ‘becoming increasingly upbeat about recovery prospects’
Stacked furniture on a closed restaurant terrace on Gendarmenmarkt in Berlin.

Stacked furniture on a closed restaurant terrace on Gendarmenmarkt in Berlin.

Photographer: Liesa Johannssen-Koppitz/Bloomberg
Updated on

Business activity in the euro-area economy shrank for a fourth month in February as services struggled with continued lockdowns and factories ran into increasing supply constraints.

A composite gauge for both sectors stood at 48.1, slightly higher than in January but still below the 50 mark that separates expansion from contraction. Services deteriorated at the fastest pace since November, while manufacturing output rose the most in four months.