Worsening Euro-Area Data May Still Not Show Full Damage

(Bloomberg) -- Purchasing Managers’ appraisal of the euro-area economy probably worsened in April after an already painfully weak previous month, yet Bloomberg Economics warns that the figures -- due to be published Thursday -- may still not reflect the full scope of the slump. “The euro-area PMI for April may provide limited additional information on the economic damage caused by the lockdowns put in place to slow the spread of the coronavirus,” said Jamie Rush, chief European economist. “It’s a diffusion index that struggles to capture the extent of output losses, especially at the extremes.”

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