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Eurozone December Services PMI Revised Lower

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Eurozone December Services PMI Revised Lower

January 6, 2021
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Eurozone December Services PMI Revised Lower
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The IHS Markit Eurozone Services PMI was revised lower to 46.4 in December 2020, down from a preliminary estimate of 47.3 and compared with November’s six-month low of 41.7.

Output contracted for a fourth straight month, although at a softer pace, with all nations except Ireland registering a decline in activity. Italy recorded by far the sharpest reduction, followed by Germany and then Spain. New orders dropped for a fifth month in a row, with exports falling once again sharply due to ongoing strict travel and tourism restrictions; while employment continued to contract.

Meanwhile, price pressures intensified, though remained relatively benign when compared to the survey’s historical average. Output charges were cut for a tenth consecutive month. Looking ahead, sentiment among service providers about future prospects hit a two-and-a-half year high in December.

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