Europe seems set to end 2020 as a weak spot for the global economy, as business surveys indicate that service providers saw another decline in activity during November, while their Asian counterparts reported a continued pickup.
Fresh waves of coronavirus infections prompted many European governments to impose tough new restrictions on businesses and households in late October, measures that are now being eased.
By contrast, some Asian countries have largely contained the pandemic, and are easing the less severe restrictions they retained. The result is that while Europe’s largest economies are likely to contract in the final quarter of the year, the recovery in Asia’s largest economies is set to continue.
Data firm IHS Markit Friday said its Purchasing Managers Index for the eurozone’s services sector fell to 41.7 in November from 46.9 in October, its lowest level since May. A reading below 50.0 points to a decline in activity, while a reading above that threshold points to an increase.
Similar surveys for the U.S. to be released later Thursday are expected to point to a strong rise in activity.