Record contraction in services associated with quarantine measures hasn’t resolved in strong bounce. The service economy is still in contraction or near it. It means that with the chance of recurring quarantine the economy is even more vulnerable than before the COVID.
The service sector of various European countries picked up again in June after the strong dip in April and the cautious recovery in May. Markit reported it based on the final figures. The service sector includes tourism, retail, hospitality and aviation, which has been severely affected by measures to curb the spread of the corona virus.
For Germany, the eurozone’s largest economy, Markit now had a score of 47.3. This means that there is still shrinking. A position above 50 indicates growth. However, the figure turned out higher than expected. A score of 50.7 was reported in France. This figure was also slightly better than anticipated.
In Spain and Italy, where there was a sharp contraction last month, activity picked up strongly. Spain recorded a score of 50.2, which even showed a slight growth. In Italy, the indicator with a score of 47.6 just barely remained on negative ground. A score of 47.1 was measured in the United Kingdom.
A score of 48.3 was measured for the entire eurozone. This figure was also higher than expected. The Markit researchers previously warned that there is still a very long way to go before the European economy returns to pre-crisis levels and that there will be a major economic downturn this quarter.