Covid recovery in eurozone stalls, dimming hopes of V-shaped climb back

August PMIs for services and manufacturing show retreat from July's bounceback

The eurozone's recovery from its deepest economic downturn on record hit the brakes in August, as pent-up demand unleashed by the easing of coronavirus lockdowns dwindled, according to a closely watched survey.

After many of the initial Covid-19 restrictions were relaxed, activity in the eurozone expanded in July at the fastest pace since mid-2018. But as infection rates have risen again in parts of the region, some earlier curbs have been reinstated.