Eurozone business growth slowed in December, with Omicron rising to Reuters

LONDON (Reuters) – Eurozone business growth has slowed more than expected this month as new cuts to reduce the Omicron coronavirus variant slow the recovery of the mainstream blockchain industry, a poll showed on Thursday.

Europe is facing a fourth wave of infection and many governments are encouraging citizens to stay home and avoid unnecessary social relationships.

IHS Markit’s Flash Composite Purchasing Managers ’Index, a good indicator of overall economic health, fell to 53.4 in December from 55.4 in November, the lowest since March and below the 54.0 forecast in a Reuters poll.

This number of incumbents fell by PMI services, from an eight-month low of 53.3 to 55.9. Despite being above the 50 mark that separates growth and contraction, it lost the Reuters poll estimate of 54.1.

“The eurozone economy is suffering another blow as a result of COVID-19, as rising levels of infection have slowed the growth of the service sector, leading to a disappointing end to 2021,” said Chris Williamson, head of business economics at IHS Markit.

Growth in demand for services fell to its lowest level since April, when it slowed, and new business indexes fell to 52.6 from 54.2.

The factory as a whole, which was less affected by coronavirus reductions, suffered somewhat and the manufacturing PMI fell to a 10-month low of 58.0 from 58.4 in November. The output measurement index fed in the PMI compound rose to 53.9 from 53.8.

In a bright spot for European Central Bank politicians, who will meet later on Thursday, price pressures have eased, albeit at a high rate. The input price index fell to 87.0 from 88.9, and the output price index fell even further.

“Relieving supply constraints has eased some of the rising pressures on inflation,” Williamson said.

The ECB will halve the number of assets it buys every month from April, according to a Reuters poll https://www.reuters.com/article/eurozone-economy-poll/ecb-to-halve-bond-purchases- april-say-economists -idUSKBN2IS00V economists, although interest rate hikes are likely to be a few years away.

But as the vaccine spread, optimism about the coming year improved. The composite production index for the future has recovered to 66.5 from 66.1.