The Eurozone economy is in unprecedented decline and the contractions could deepen further as the closure of economic and social activity to control Coronavirus is prolonging. IHS Markit has recently published a report on services and production points, noting that there is an annual economic contraction of about 10 percent.
Even according to the publication, the business confidence has dropped to such levels that the loss is seen as inevitable, Telegrafi reports. The estimate predicts a bleak week for Europe’s economy, with figures showing that production was in deep recession, at a time when unemployment is rising and thousands of companies in Germany have cut short hours of work. Mark’s buying index fell to 29.7 in March, even lower than originally estimated.
This has dropped from 51.6 in February and well below 50, the line that separates growth from contraction. Almost every place in the survey had a low reading at record values. Measures for services, which include hotels and restaurants fell 26.4, while Italy had the deepest losses, where for March it was estimated at only 17.4 points.
The decline is particularly noticeable in tourism and leisure and entertainment businesses, which are now closed as part of national social distancing measures. Many countries are prolonging their state of emergency as the death toll from the blast continues to rise. “No country is escaping a deep fall.
But the particularly large drop in the services sector to just 17.4 reflects the dark picture of things after the isolation is over in the coming months, when things will never return to normal, “said Chris Williamson, chief business economist at IHS. Markit.