Daily Times

The plunge in euro zone business activity caused by lockdowns imposed to stop the spread of the coronavirus eased sharply last month as more businesses reopened and people ventured out, a survey showed on Friday.

Around 11 million people have been infected by the virus globally, but as the number of daily reported cases has fallen across much of Europe governments have loosened restrictions on people’s movement.

To support ravaged economies the European Central Bank expanded its pandemic-related bond purchases to a total of 1.35 trillion euros last month while governments have waded in with unprecedented levels of fiscal stimulus.

That may be paying dividends as IHS Markit’s final Composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, bounced to 48.5 in June from May’s 31.9, better than a 47.5 preliminary reading and close to the 50-mark separating growth from contraction.

“The sharp increases in the euro zone PMIs in June suggest that activity is bouncing back quite quickly, but remains far lower than before the crisis,” said Jack Allen-Reynolds at Capital Economics.

A June Reuters poll predicted the economy contracted an unprecedented 12.5% last quarter but would grow 7.9% this quarter.

World shares inched towards a four-month high on Friday and industrial bellwether metal copper was set for its longest weekly winning streak in nearly three years, as recovering global data kept nagging coronavirus nerves at bay.