BRUSSELS: Business activity in the 19-nation eurozone is increasing for the first time since February, before the coronavirus lockdown, according to a survey of purchasing managers by IHS Markit. The firm's PMI output index turned positive - hitting 54.8 points in July compares to 48.5 in June - and showed the sharpest rate of growth in July for just over two years.
The index fell to its lowest ever level in April, plunging to 13.6 points - anything under 50 indicates a contraction. It improved to 31.9 in April and 48.5 in June. "The data add to signs that the economy should see a strong rebound after the unprecedented collapse in the second quarter," said Chris Williamson, IHS Markit's chief business economist.
IHS Markit ascribed the turnaround to lockdowns across the continent easing - allowing firms to get back to work and consumers to return to shops, easing the pace of job losses. In Germany, the eurozone's biggest economy, the composite PMI hit a 23-month high of 55 points, in its first month of growth since February.
While output and new orders increased, employment continued to fall. Business confidence hit a two-year high. In France, the composite PMI index jumped to 57.6 points, its strongest gain in 2.5 years. Markit noted that new work increased for the first time in five months, but employment fell. If domestic demand continued to build then businesses should have more confidence to start hiring more staff.
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