Global Business Downturn Shows Signs of Easing as Lockdowns Loosen

A worker prepares a store on the reopening day at Galleria Vittorio Emanuele II, in Milan, Italy, on May 18, 2020, as Italy eases some of the lockdown measures put in place during the COVID-19 outbreak. Flavio Lo Scalzo/Reuters

Business activity in Europe and Japan, as measured by purchasing managers index (PMI) data, declined for the third straight month because of COVID-19 restrictions, although at a slowing pace, reflecting a gradual economic pickup as lockdowns begin to be lifted.

“The eurozone saw a further collapse of business activity in May, but the survey data at least brought reassuring signs that the downturn likely bottomed out in April,” said Chris Williamson, chief business economist at IHS Markit, which released its PMI survey of eurozone business activity on May 20 (pdf).