empty
16.12.2021 04:45 PM
EU business growth slowing down in December due to Omicron threat

According to a survey released on Thursday, Eurozone business growth has slowed down more than expected in December due to renewed restrictions aimed at limiting the outbreak of the Omicron strain of COVID-19. New quarantine measures have limited the recovery of the bloc's dominant service industry.

Eurozone business growth slow in December due to Omicron threat

This image is no longer relevant

Europe is facing the fourth wave of the pandemic, as many governments urge their citizens to stay at home and avoid unnecessary social contacts.

IHS Markit's Flash Composite Purchasing Managers' Index, a good indicator of overall economic health, dropped in December to 53.4 from 55.4 in November, reaching the lowest level since March. An earlier Reuters poll forecasted the index to reach 54,0 points.

The services PMI slumped to an 8-month low, reaching 53,3 compared to earlier level of 55.9. Although the index did not cross the 50,0 mark separating growth from contraction, it missed the predicted 54.1 points.

"The renewed decline in the Composite PMI in December suggests growth slowed to a crawl as tighter restrictions and growing consumer caution are taking their toll on economic activity, with the service sector bearing the brunt," Michael Tran at Capital Economics commented.

Growth of demand for services has reached the lowest level since April, with the new business index falling to 52.6 from 54.2.

Earlier data indicated that the growth of the private sector in Germany has stopped, as the service sector of Europe's biggest economy got hit by new restrictions.

The new variant of COVID-19 weighed down on business activity growth in France - the second economy in the Eurozone and the only other country in the bloc to report flash data.

The disappointing news comes after the recent EU industrial output data for October, which gave optimism to investors.

Outside the euro bloc, Omicron has already hit the UK hospitality sector and travel companies, sending private sector growth down to a 10-month low.

Nevertheless, the Bank of England has announced the winding down of economic stimulus and a gradual interest rate increase.

Earlier, investor betted against a rate hike with the ongoing coronavirus wave in full swing. Wednesday's data showed that the UK CPI beat market expectations and reached a 10-month high in November.

Weakening inflation pressure

The new coronavirus restrictions have also affected factories, which are generally less affected by quarantine measures. The manufacturing PMI declined to a 10-month low of 58.0 from November's 58.4. An index measuring output that feeds into the composite PMI nudged up to 53.9 from 53.8.

Price pressure has slightly declined but remained high, in one brighter spot for the policymakers at the ECB. The input prices index eased to 87.0 from 88.9. The output prices index declined even stronger.

"Price pressures have been easing in December, albeit only cautiously. It is a cautious sign of some easing pressures coming from supply shortages, which confirms some anecdotal evidence but it's way too early to conclude that the worst is behind us," said Bert Colijn at ING.

According to an expert poll by Reuters, the ECB is set to reduce monthly asset purchases twofold every month from April 2022. The interest rate increases are likely years away.

The optimism of market players about 2022 is improving as the rapid vaccine rollout continues, with the composite future output index recovering to 66.5 from 66.1.

"Forward-looking indicators also offered a glimmer of hope. Year-ahead sentiment improved marginally in December, in part due to hopes of further easing in supply-side disruptions following some encouraging signs in December," commented Ricardo Amaro at Oxford Economics.

A slight decrease in inflation could be attributed to falling demand due to the new wave of COVID-19, as well as the traditional period of discounts during the holiday season. The industry and retail sector are expecting a boom in the run-up to the holidays.

The actual economic situation and the true extent of the losses caused by COVID-19 would be only clear after the New Year's Day.

Egor Danilov,
Pakar analisis InstaForex
© 2007-2025
Pilih carta masa
5
min
15
min
30
min
1
jam
4
jam
1
hari
1
minggu
Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN

Artikel yang dicadangkan

Ringkasan Berita Pasaran AS untuk 12 Jun: Pasaran Saham AS Ditutup Lebih Rendah Berikutan Perkembangan Perjanjian Perdagangan AS-China

Pasaran saham Amerika Syarikat menamatkan sesi dagangan dengan penurunan selepas Amerika Syarikat dan China memuktamadkan perjanjian perdagangan yang telah lama dinantikan. Walaupun latar belakang berita tersebut bersifat positif, para pelabur

Ekaterina Kiseleva 16:31 2025-06-12 UTC+2

Robinhood terkeluar dari S&P 500 — kesan domino melanda pasaran global

Saham Robinhood jatuh selepas platform dagangan tersebut dikecualikan dari S&P 500. Saham Warner Bros. merosot selepas syarikat itu mengumumkan perancangan untuk menyusun semula perniagaannya. Saham-saham Eropah menurun apabila UBS jatuh

14:54 2025-06-11 UTC+2

Kontras Harian: Nikkei Meningkat, EUR Menyusut, Pasaran Global Menahan Nafas Menjelang Rundingan AS-China

J.M. Smucker menurun. Bank Dunia mengurangkan unjuran pertumbuhan global bagi tahun 2025. Nikkei meningkat, manakala niaga hadapan Wall Street dan euro melemah. Dolar menunjukkan sedikit pergerakan, manakala pasaran bon kekal

14:31 2025-06-11 UTC+2

Rangkuman Berita Pasaran Amerika Syarikat untuk 11 Jun

Pasaran saham Amerika Syarikat telah mencapai paras unjuran dan kini memasuki "fasa peninjauan yang tenang" sementara para pelabur menantikan pelepasan data inflasi utama. Data yang bakal dikeluarkan ini berkemungkinan menentukan

Ekaterina Kiseleva 13:57 2025-06-11 UTC+2

Arus Silang Hari Ini: Nikkei Meningkat, Euro Menurun, Pasaran Global Bersiap Sedia untuk Rundingan Amerika Syarikat-China

J.M. Smucker merosot selepas unjuran pesimis Bank Dunia menurunkan unjuran pertumbuhan global bagi 2025 Nikkei meningkat, niaga hadapan Wall Street dan euro menurun Dolar hampir tidak berubah, bon menanti data

Thomas Frank 07:48 2025-06-11 UTC+2

Ringkasan Berita Pasaran Amerika Syarikat untuk 10 Jun

Indeks S&P 500 dan Nasdaq 100 mencatatkan kenaikan yang ketara, didorong oleh jangkaan positif menjelang rundingan perdagangan Amerika Syarikat-China yang akan datang. Para pelabur bertaruh pada kemungkinan pengurangan tarif, yang

Ekaterina Kiseleva 12:52 2025-06-10 UTC+2

Robinhood Jatuh Dari S&P 500 — Kesan Domino Menimpa Pasaran Keseluruhan

Robinhood Jatuh Setelah Platform Dibuang Dari S&P 500 Warner Bros. Saham Jatuh Setelah Syarikat Mengatakan Rancangan Untuk Mengasingkan Perniagaan Saham Eropah Jatuh Berikutan Penurunan UBS, Perbincangan Perdagangan AS-Cina Menunggu McDonald's

Thomas Frank 12:49 2025-06-10 UTC+2

Kadar Faedah Meningkat Sambil Pasaran Menantikan Data CPI, Pertelingkahan Trump–Musk, dan Qualcomm Mengambil Alih Alphawave

Laporan CPI bagi bulan Mei dijadualkan pada hari Rabu Rang undang-undang belanjawan menjadi tumpuan di tengah pertelingkahan antara Trump dan Musk Saham Alphawave melonjak susulan rancangan pengambilalihan oleh Qualcomm Saham

Thomas Frank 11:49 2025-06-09 UTC+2

Pertembungan Gergasi: Musk lawan Trump ketika Pelabur Mengira Kerugian

Dow -0.25%, S&P 500 -0.53%, Nasdaq -0.83% Tesla Jatuh ketika Perselisihan Terbuka Trump-Musk Semakin Memuncak Tuntutan Pengangguran Awal Meningkat untuk Minggu Kedua Berturut-turut Saham Adidas, Puma Jatuh Selepas Lululemon Memotong

Thomas Frank 11:45 2025-06-06 UTC+2

Indeks AS Mendatar, Asia Meningkat: Apakah yang Sedang Berlaku dalam Pasaran Global?

Dow -0.22%, S&P 500 mendatar, Nasdaq +0.32% Sektor perkhidmatan menguncup pada bulan Mei buat kali pertama dalam tempoh hampir setahun Saham CrowdStrike merosot akibat unjuran pendapatan suku tahunan yang pesimis

Thomas Frank 10:19 2025-06-05 UTC+2
Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.