Eurozone economic downturn milder than expected — report
January 4, 2023
A new report published on Wednesday has found the eurozone's recession may not be as deep as expected.
S&P Global's final composite Purchasing Managers' Index (PMI) for the eurozone rose to a five-month high of 49.3 in December. That's also higher than the month's preliminary estimate of 48.8. S&P is a global financial intelligence provider.
An index below 50 indicates economic contraction, while an index above 50 indicates growth.
"The eurozone economy continued to deteriorate in December, but the strength of the downturn moderated for a second successive month, tentatively pointing to a contraction in the economy that may be milder than was initially anticipated," said Joe Hayes, a senior economist at S&P Global Market Intelligence.
Eurozone still unlikely to see growth in the near future
The composite PMI is seen as a good gauge of economic health in the eurozone, which has been dealing with inflation and energy shortages stemming from Russia's invasion of Ukraine.
It surveys manufacturing and services firms across several major European economies, including Germany, France, Italy and Spain, tracking variables like sales, employment and prices.
The survey results, which were released on Wednesday, painted a marginally better economic picture than previous estimates.
"Nevertheless, there is little evidence ... to suggest the eurozone economy may return to meaningful and stable growth any time soon," Hayes said.
Reuters material contributed to this report.
Edited by: Darko Janjevic