Europe 'Inevitably' Heading Towards Double-Dip Recession, PMI Survey Finds

The Purchasing Managers' index (PMI) reflects economic trends in the manufacturing and service sectors. A PMI below 50 points indicates a downturn of economic activity. The Eurozone's PMI for December sank to 49.1 amid new lockdown measures imposed to halt the spread of the coronavirus.

A double-dip recession in Europe seems an "increasingly inevitable" prospect, a PMI survey conducted by Markit Economics revealed on Friday.

According to preliminary estimates, the Eurozone's PMI tanked to 47.5 in January, down from 49.1 registered in December.

January’s PMI for the Eurozone’s manufacturing sector dropped to 54.7 against 55.2 in December, while in the service sector it slid from 46.4 to 45.

Markit Economics said January’s figures mark the sharpest decrease since November 2020.

The downward trend in business activities in the Eurozone comes as EU members ramp up lockdown measures to combat a spike in coronavirus cases – fuelled by a more contagious strain, detected in the UK in December.

Last week, the UK Office for National Statistics similarly predicted a double-dip recession for the country, as the nation's gross domestic product lost 2.6% in November.