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.