According to the report from IHS Markit, the growth of business activity in the eurozone slowed in December, which was due to an increase in cases of COVID-19 infection. Meanwhile, business optimism remained steady - companies hoped that the disruptions associated with the pandemic would decrease next year, especially with regard to supply chains.
The data showed that the composite PMI index - which reflects activity in the manufacturing and services sectors - fell to 53.4 points in December, compared with 55.4 points in November, and reached its lowest level since March. Meanwhile, the average for the 4th quarter fell to 54.3 points against 58.4 points in the previous quarter.
The slowdown in the growth of activity in the private sector was due to the services sector - the PMI index in the services sector fell to 53.3 points in December from 55.9 points in November. Economists had expected a decline to only 54.1 points. The drop in the PMI index in the service sector was associated with a sharp decline in activity in the tourism and recreation sector, the scale of which was similar to the declines observed at the beginning of the year.
Meanwhile, the PMI index in the manufacturing sector fell to 58.0 points from 58.4 points in November. Economists had expected a drop to 57.8 points. Thus, the industrial sector has outpaced the service sector for the first time in five months.