Spanish Services Woe Threatens Eurozone Economic Recovery

The economic impact of the coronavirus resurgence in parts of Europe was laid bare on Monday by data which showed that fresh restrictions to control the spread of the virus had begun to choke off the recovery in the hardest hit country, Spain, the Financial Times reported. The decline in Spanish business sentiment data increases the chances that the eurozone economy will suffer a fresh downturn in the final months of this year, after rebounding from a historic recession caused by the onset of the pandemic in the first half of 2020, economists warned. Spain’s IHS Markit purchasing managers’ index for the services sector — a widely watched measure of business sentiment — fell to a four-month low of 42.4 in September, down from 47.7 in the previous month. A reading below 50 indicates a majority of businesses reported deteriorating conditions compared with the previous month. Read more