Investors are no longer afraid of either the coronavirus or its second wave. Currently, they are filled with enthusiasm about a steady four-months economic growth in the euro area. According to analysts, the eurozone composite PMI increased by five points to -13.4 in August. This indicator has not reached such a level since February last year. Interestingly, the preliminary data turned out to be far worse than the final one.
The French economy can be cited as an example. Thus, the country reports that both business and economic activities are growing. France’s purchasing managers’ index is rising but is still failing to get 7% to the normal level. Only the pharmaceutical and agricultural sectors have almost reached the pre-crisis levels.
Meanwhile, France’s gross domestic product in the second quarter plunged by 14%, while the eurozone economy shrank by 11.9% during the pandemic.
Economic statistics show that Europe is unlikely to recover quickly and sufficiently: this is going to be a smooth and slow process.
