Eurozone Business Activity Opens 2022 With 11-Month Low

Source: IHS Markit

The eurozone business sector contracted for the second straight month in January to mark the lowest level in 11 months, dragged by the impact of the COVID-19 Omicron variant. EZU is down 1.39%.

• The IHS Markit Eurozone Composite PMI slipped to 52.4 in January from 53.3 in December. This is the slowest since the recovery started in March 2021.
• Services declined to a nine-month low due to the higher COVID-19 infection rates, which led to the reimposition of restrictions in Germany, France, Italy, and Spain.
• Restrictions in the eurozone rose to the highest level since May 2021, with firms reporting labor shortages due to illness and isolation activities.
• Manufacturing rose to a five-month high as supply issues eased to boost productivity among firms.
• Chief Economist Chris Williamson noted that while Omicron hit prospects, it is less severe than previous waves.
• Prices for both goods and services are growing at a joint-record rate, dampening any prospects of a deceleration in inflation.