IHS Markit reported that the index, which measures business activity in the euro area, fell to 45.1 points in November from 50 points in October.
Analysts expected PMI to fall to 46.1 points. The IHS Markit report notes that a sharp deterioration in the epidemiological situation in some countries in the euro area has led to a weakening of business activity. This means that the last quarter of this year is likely to be completed with a contraction in the region’s economy. The most significant damage was done to the services sector in the euro area. PMI, calculated for this area, fell this month by 5.6 points compared to October to 41.3 points while the forecast decline to 42.5 points.
Due to the reduction in demand for services amid the restrictions imposed, companies were forced to lay off some of their employees. The index characterizing employment in the eurozone services sector fell to 48.1 points in November. In October, it was at the level of 48.5 points. PMI for the manufacturing sector is still above the important level of 50 points. In November, it dropped 1.2 points from the previous month to 53.6 points.