Economic activity in the EuroZone plummeted during the month of November, following a resurgence of lockdowns due to the second wave of the COVID-19 pandemic, reported AFP quoting a key survey that was released on Monday.

Chris Williamson, the chief economist of IHS Markit, said, “The eurozone economy has plunged back into a severe decline in November amid renewed efforts to quash the rising tide of COVID-19 infections.”

The firm, which closely monitored the PMI index said, it plunged from 50 points to 45.1 points in October.

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Drawing conclusions from its observation, Markit said that the economy of the 19-member single currency bloc would stumble back into recession in the fourth quarter, obliterating gains accrued mid year.

Williamson added, “the further downturn of the economy… represents a major set-back to the region’s health and extends the recovery period.”

The survey further revealed that there was emerging optimism for a better recovery next year with news of a vaccine as an antidote in the battle against coronavirus.

The IHS Markit stated that while the eurozone economy would shrink by a historic 7.4% in 2021, it would recover by 3.7% in 2021.

The firm opined that the November downturn could affect the service sectors the most, with those constrained by lockdowns being adversely affected.

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France was looking forward to a major economic downturn with a result of just 39.9 points on PMI, stated the firm.

Eurozone’s largest economy, Germany was the clear exception, as it showcased expansion in the period following a relatively lower rate of COVID-19 infections.