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Eurozone Ends 2021 With Nine-Month Low Economic Growth

December 16, 2021 by Forex Winner Leave a Comment

Eurozone Ends 2021 With Nine-Month Low Economic Growth

Source: IHS Markit

The Eurozone economic growth slowed to a nine-month low in December, dragged by the increase in COVID-19 infection rates in the service sector activity. EZU is up 0.35%.

  • The headline IHS Markit Eurozone Composite PMI declined by two points to 53.4 in December. This is the lowest since March, following the 55.4 in November.
  • The latest figure brought the average reading for the fourth quarter to 54.3, lower than the 58.4 recorded in the third quarter, marking slower economic growth.
  • The decline was attributed to the increase in infection rates, offsetting the higher manufacturing growth as supply delays were addressed.
  • Companies recorded higher costs and average selling prices, albeit at a slower rate than that recorded in November.
  • Business activity in the service sector grew at the slowest rate since April, weighing down tourism and recreation activity.
  • Manufacturing growth increased as the factory sector outpaced services for the first time in five months, even as production expanded for the first time since September.

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