Forex News

Eurozone records worst ever slump in economic activity

Eurozone records worst ever slump in economic activity

Data on the eurozone economy showed on Wednesday that business activity recorded the worst ever slump in economic activity in April as a result of government-imposed closures to curb the spread of the Corona virus.

According to IHS Markit’s data, the Eurozone’s composite PMI fell to 13.6 points in April, from a reading in March at 29.7, it’s the lowest since the survey began in 1998. It should be noted that the current reading of the index was slightly better than the initial reading of 13.5.

“The extent of the euro area economic downturn was laid bare by record downturns in every country surveyed in April, with output falling at unprecedented rates across the region’s manufacturing and services sectors,” Chris Williamson, Chief Business Economist at IHS Markit said.

The current Eurozone data indicate that the region's economy will struggle to grow again as indicators foresee a quarterly GDP contraction of 7.5 percent.

The coronavirus has infected about 3.6 million people worldwide and the death toll increased to more than 250,000 people, where economic activity has declined and supply chains have been severely affected.

As of 08:53 GMT, the EUR/USD traded at 1.0800 after opening the day at 1.0839, while the lowest level was at 1.0791.

Share Article