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Eurozone business growth slows as virus rise crimps demand

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Agence France-Presse

BRUSSELS - Eurozone economic activity slowed in August as a new rise in cases of the coronavirus in parts of Europe blunted a recovery, IHS Markit said Friday.The firm&#x27;s closely-watched PMI index fell to 51.6 points from 54.9 points in July but was still above the key 50 points level which indicates growth.&quot;The eurozone’s rebound lost momentum in August, highlighting the inherent demand weakness caused by the COVID-19 pandemic,&quot; said Andrew Harker, economics director at IHS Markit.&quot;The recovery was undermined by signs of rising virus cases in various parts of the euro area, with renewed restrictions impacting the service sector in particular,&quot; he added.The data provider said that Germany, the eurozone&#x27;s biggest economy, was largely unaffected by the slowdown with business confidence its strongest in two years.France, however, failed to replicate the strong rebound of the previous month with only a modest rise in new orders for companies.The rest of the eurozone -- which includes Spain and Italy -- were marginally in contraction territory, IHS Markit said, noting that staff were being cut across the continent.Harker said the eurozone was at a &quot;crossroads&quot;.Growth will either &quot;pick back up in coming months or continue to falter following the initial post-lockdown rebound.&quot;This would depend on how successfully a second wave of the virus can be suppressed and whether Europeans will have the confidence to recharge the economy, he said.<div>© Agence France-Presse</div>

Eurozone economic activity slowed in August as a new rise in cases of the coronavirus in parts of Europe blunted a recovery, IHS Markit said Friday.

Eurozone economic activity slowed in August as a new rise in cases of the coronavirus in parts of Europe blunted a recovery, IHS Markit said Friday.