Eurozone PMI Manufacturing dropped to 54.7 in January, down from 55.2, missed expectation of 55.0. PMI Services dropped to 45.0, down from 46.4, above expectation of 44.8. PMI Composite dropped to 47.5, down from 49.1.
Chris Williamson, Chief Business Economist at IHS Markit said: “A double-dip recession for the eurozone economy is looking increasingly inevitable as tighter COVID- 19 restrictions took a further toll on businesses in January…. Some encouragement comes from the downturn being less severe than in the spring of last year, reflecting the ongoing relative resilience of manufacturing, rising demand for exported goods and the lockdown measures having been less stringent on average than last year…
“The roll out of vaccines has meanwhile helped sustain a strong degree of confidence about prospects for the year ahead, though the recent rise in virus case numbers has caused some pull-back in optimism. The survey data therefore add to the view that t he eurozone will see a soft start to 2021, but that the economy should pick up momentum again as the vaccine roll out gathers pace.”
