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Pedestrians pass cafes and retail stores on the pedestrianized Rue Montorgueil in Paris, France, on Wednesday, Aug. 26, 2020.
Nathan Laine/Bloomberg News
Eurozone service activity barely expanded in August, according to data released Thursday, a sign of the halting recovery from the pandemic.
The IHS Markit eurozone services PMI registered 50.5 in August versus 54.7 in July. That’s slightly above the flash reading of 50.1, and over the 50 mark indicating improviing conditions.
A marked slowdown of growth in France, plus returns to contraction in Italy and Spain, weighed heavily on overall service sector expansion, IHS Markit said.
“The near-stalling needs to be viewed in the context of the strong expansion seen in July: business growth had surged to a near two-year high as economies opened up further from the severe COVID-19 lockdowns. However, the latest reading still sends a disappointing signal that the rebound has lost almost all momentum,” said Chris Williamson, chief business economist at IHS Markit.
