Eurozone

Following the sharp fall in GDP in Q1, monthly figures show that economic activity collapsed further in April, coinciding with the peak of lockdown measures in most European countries. But more recent data indicates that activity was starting to recover before the end of Q2. After collapsing in March and April, the PMIs rose strongly for a second consecutive month in June, suggesting that economic conditions may be returning towards normal. Meanwhile, sentiment indicators continue to improve, driven by a rise in forward-looking expectations as investors anticipate a deep but shortlived recession.