Economics
Europe’s Economic Revival Put on Hold by Virus Resurgence
- Composite PMI unexpectedly falls to 50.1 in September
- Employment in the euro area declines for a seventh month
A waiter stands and waits for customers outside a restaurant on Plaza Mayor in Madrid, on Sept. 22.
Photographer: Paul Hanna/BloombergThis article is for subscribers only.
The euro area’s economic recovery stalled this month as consumers fretted about a resurgence of the coronavirus and governments reinstated restrictions to control the spread of the disease.
IHS Markit’s composite Purchasing Managers Index unexpectedly fell to 50.1 from 51.9 in August, far worse than economists had forecast. The weakness is a reminder that while the initial rebound from lockdowns proved stronger than anticipated, that’s little guide to the longer term. Activity is still below its pre-crisis levels, full recovery is a long way off, and a number of sectors remain in trouble.