A new decline in business activities in the Eurozone in December

The contraction in business activities in the eurozone persisted at the close of 2023, primarily driven by an ongoing decline in the dominant services sector. A survey released on Thursday indicates that the bloc’s economy is experiencing stagnation.

The Standard & Poor’s Composite Purchasing Managers’ Index, considered a reliable gauge of the overall economic health, was revised upward for December to align with the 47.6 points recorded in November. This comes after an initial estimate of 47 points; however, it remained below the critical 50 level for the seventh consecutive month, indicating an ongoing period of contraction.

This trend suggests that the 20-nation eurozone economy, which contracted by 0.1 percent in the third quarter of 2023, is likely to experience another contraction in the fourth quarter, meeting the technical definition of a recession.

The services PMI showed a modest improvement, reaching its highest level in five months at 48.8 points compared to 48.7 points in November.