Rising Covid-19 infections, a new coronavirus variant and the reimposition of pandemic restrictions are threatening the eurozone’s economic rebound, with fewer people going out to shop, eat at restaurants and visit cinemas, high frequency data show.
The slowdown creates a further challenge for the European Central Bank, which must also deal with rising inflation that hit a record 4.9 per cent in November, its highest since the single currency was created over two decades ago.
Although the eurozone notched up strong growth in the three months to September, thanks largely to a burst of consumer spending, high frequency indicators that track restaurant bookings, cinema ticket sales and other measures of mobility suggest the rebound lost momentum in November.