Latest data published by Markit – June 3, 2020
- Before 12.0
- PMI composite 31.9 vs 30.5 prelim
- Before 13.6
Once again, the reading of flagship services only reflects an improvement in conditions from April to May, but a continued sharp decline in new business, new jobs and new job cuts still weigh on general economic conditions .
Markit notes that:
“The scale and extent of the euro area slowdown
was highlighted by the PMI data showing all
countries undergoing another month of sharp decline
Commercial activities. GDP in the euro area is therefore
expected to drop at an unprecedented rate in the second
quarter, accompanied by the largest increase
unemployment seen in the history of the euro area.
“Encouragingly, as the decline rates of the two
business activity and employment remained
shockingly stiff for a third consecutive month
May, the slowdown has already eased markedly
all countries surveyed. Optimism about the outlook
also returned to Italy and, to a lesser extent,
France, while pessimism has clearly diminished
in all other countries.
“Provided there is no resurgence of infection
figures, the planned lifting of blockages wants
inevitably help stimulate business activity and
feeling even more in the coming months.
“However, the outlook is marked by the prospect of
demand remains weak due to Housework
spending affected by high unemployment rates
and business expenses being moderate as
companies repair balance sheets.
“Consumer services should continue
take the hardest hit of these COVID-19
containment measures which may need to remain
place the longer one, acting as a particular brake on the
“We therefore remain cautious with regard to
recovery. Our forecasters expect GDP to drop by
almost 9% in 2020 and for a return to pre-pandemic production levels which will take several years. “