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Euro area economic activity improves despite corona spread

Euro area economic activity improves despite corona spread

Economic activity in the eurozone expanded to a six-month high on February, although the service sector's reading was revised downwards and despite the outbreak of coronavirus globally.

According to data released by Markit on Wednesday, the composite PMI, which includes the performance of the manufacturing and service sectors, in the euro zone recorded 51.6 points in February, the highest level in six months, up from 51.3 in January.

For service activity in the euro zone, the PMI gauge improved to 52.6 points in February from 52.5 points the previous month, yet it came lower that both preliminary and market expectations of 52.8.

The data indicated that the eurozone economy has shown resilience in the face of the turmoil caused by the outbreak of Coronavirus in February.

In the UK, the service activity slowed in February, but remained above the 50-point level that separates contraction from expansion.

UK's service PMI recorded 53.2 points in February, compared with 53.9 points in January, while analysts had expected a score of 53.2. The Composite PMI came in at 53.0 last month, lower than January’s reading of 53.3.

Meanwhile, the euro traded lower against its US counterpart at 1.1162, halting its whopping upside rally that started last week.

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