Eurozone Business Activity Shrinks in January as Lockdowns Hit Services

Eurozone Business Activity Shrinks in January as Lockdowns Hit Services
Empty chairs and tables are pictured on the first day of the temporary closing of restaurants, as the spread of coronavirus disease (COVID-19) continues in Berlin, Germany, on Nov. 2, 2020. Annegret Hilse/Reuters
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LONDON—Economic activity in the eurozone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc’s dominant service industry hard.

With hospitality and entertainment venues forced to remain closed across much of the continent, surveys on Jan. 22 highlighted sharp contractions in the services industry but also showed manufacturing remained strong as factories largely kept working.