European economic rebound slows as virus cases rise

London

The European economy’s rebound from the coronavirus recession slowed in August, as a pick up in new confirmed cases appeared to hobble the reopening of some businesses and travel from their near-complete shutdown in the spring.

An indicator of business activity by research firm IHS Markit fell back to a level that suggests the economy is barely growing after a relatively strong burst in July, when many countries had phased out the restrictions on public life that were imposed in the spring to contain the pandemic.

The purchasing managers’ index, which is based on a survey of 5,000 companies across the 19-country eurozone, dropped to 51.6 points in August from 54.9 in July. The 50-mark separates economic contraction from growth, said AP.