The European region witnessed a noticeable decline in economic activity for the second time in November after governments stressed preventive measures due to the increasing number of infections with the Corona virus.
Whereas, the PMI aggregate index for the euro area, which relates to the activity of the manufacturing and services sectors, decreased to 45.1 in November, despite reaching 50 in October, recording its lowest value in 6 months.
On the other hand, the new news regarding the corona vaccine has boosted confidence in companies and increased hope of returning to work normally within the next 12 months, as the distribution of large quantities of the vaccine is now being prepared.
The tightening of preventive measures due to the second wave of the increase in the number of Corona virus infections led to the decline of the economy of European countries again, and the decline was largely in the service sector due to the closure of non-essential stores and the tightening of movements and the imposition of curfews in many countries, and there are expectations of a decrease of 7.4 % in total household product sales in 2020 and only a negligible 3.7% growth in 2021.
The French PMI aggregate index recorded a value of 39.9 in November, coinciding with a decline in the services sector more than the industrial sector, and the similar German index recorded a value of 52, which is considered its lowest value in 5 months but still a positive indicator, as the industrial sector recorded Strong growth, while the services sector continued to record negative results, and this indicates Germany’s ability and flexibility in dealing with the situation compared to other European countries, and all of them are now planning to gradually lift some restrictions and ease preventive measures in the coming weeks.