London – Business activity in the Eurozone is seeing a moderately strong month of December, according to the latest preliminary PMI data for the region.

The Eurozone PMI composite production index, which looks at activity in the manufacturing and services sectors, came in at 49.8 in December, up from 45.3 in November. However, a reading below 50 still indicated a contraction in business activity.

Commenting on the Flash PMI data, IHS Chief Economist Markit Chris Williamson noted that “the Eurozone economy is doing better than expected in December.”

“The data indicates that the economy is close to stabilizing after it slipped again to a sharp decline in November amid new Covid-19 lockdown measures. Thus the fourth-quarter decline appears to be much less severe than the epidemic seen earlier in the year, although the picture is mixed. Very by sector. “

The euro It traded higher against Dollars, At $ 1.22, up 0.15% against the pound, Supported by news of progress in post-Brexit trade deal negotiations between the European Union and the United Kingdom

Last month’s reading was already the lowest in six months, And decreased from 50 in October.

The eurozone economy was widely expected to take another hit from a new round of lockdowns imposed amid a second wave of coronavirus infections.

There were plans to relax the rules over Christmas to allow families to gather, but many governments, including Germany and the Netherlands, have instead tightened restrictions due to the increased number of cases.

Germany imposed more restrictions on Wednesday, closing non-essential schools and businesses. This comes on top of the closure of restaurants, bars and entertainment centers that have been closed since November. The Robert Koch Institute, the public health authority in Germany, announced 27,728 new infections during the past 24 hours, bringing the total number to 1,379,238. “We are compelled to take action,” German said On Sunday, Chancellor Angela Merkel said as more restrictions were announced.

Europe has recorded more than 22 million cases of coronavirus since the outbreak appeared in the region in early spring, According to data from the World Health OrganizationThere have been more than 493,000 deaths from the virus.