Brussels, November 23: Due to the spree of lockdowns in response to the COVID-19 second wave, the economy of Eurozone went into a "steep downturn" since the past month, found a survey conducted by IHS Markit. Most countries in the Schengen region, including the big economies of France, Germany, Spain and the UK have imposed a strict lockdown which has brought non-essential economic activities to a halt. Paris Accord Was Made to 'Kill US Economy', Says Donald Trump While Speaking at G20 Summit.

The shock to the European economy, second in the past few months, came shortly after the continent began showing a mark of recovery. After a crippling first phase of the pandemic, Europe was inching towards normalcy between August and October. With the start of colder months, however, a resurgence in virus transmission was recorded.

The IHS Markit research showed that the PMI index -- a key indicator to assess the continent's manufacturing and production activities -- dropped from 50.0 points in October to 45.1 in November. The five-point plunge is considered as significant to push back the economy and lead to job losses.

"The eurozone economy has plunged back into a severe decline in November amid renewed efforts to quash the rising tide of COVID-19 infections," said Chris Williamson, chief economist at the London-based market research agency.

Europe, along with the United States, has once again emerged as the virus hotspot. The West has outmatched the pace of COVID-19 transmission in Asia. A number of nations, however, including the United Kingdom have recorded a flattening of the curve over the past week. British Prime Minister Boris Johnson is expected to announce relaxations for non-essential businesses including restaurants, bars, pubs and gyms today.

(The above story first appeared on LatestLY on Nov 23, 2020 03:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).