“Broad economic activity across Europe looks better than we expected for this phase of recovery in late March,” economists in Berenberg told customers. Said.

While production continued to decline in production and services, contraction rates slowed down considerably. Job losses were also moderate, but the number of staff in factories continued to decline.

“Output and demand are still falling, but no longer collapse,” said Williamson. “The rise in PMI raises expectations that removing lockout restrictions will help end the fall as it enters summer.”

Williamson said, however, that the 50-level PMI readings only stabilized in the economy. “This job is not returning to normal. The levels were crushed according to the values ​​before the pandemic hit,” he said.

However, the “sharp recovery” in the PMI data shows that GDP will not be “catastrophically bad” as feared. “Today’s data provides some reassurance that the economy’s feet are back. But if some restrictions still remain and are afraid of a second wave fluctuation, it will take some time for the activity to return to pre-virus levels.” research note.

According to IHS Markit, some businesses are still reporting weak demand as customers take a cautious approach to spending.

The companies said that after processing orders placed on hold during the crashes, there may be insufficient new orders to keep operations going.

He added that the challenge for governments would be to ensure that demands are revitalized enough to help companies go through the crisis and hire staff.

France plans to extend its business support program up to two years. Speaking to Franceinfo radio earlier this month, labor minister Muriel Pénicaud said the government has taken measures that allow the public to reduce the working hours that are partially paid by the government.

IHS Markit Williamson expects the European economy to take three years to recover.

– Sophie Stuber, Charles Riley, Ya Chun Wang and Benjamin Berteau contributed to reporting.