Europe’s economy suffered a massive blow in April when government restrictions to contain the coronavirus left companies scrambling to stay afloat. An estimate of private-sector activity in the euro area plunged to just 13.5 from 29.7 in March, IHS Markit said Thursday. The drop was far sharper than economists had anticipated and marks the lowest reading for the Purchasing Managers’ Index since it began more than two decades ago.
The report is a grim preview for European leaders, who will discuss a possible 2 trillion-euro ($2.2 trillion) rescue plan for the region on Thursday. Governments have already pledged billions of euros in aid, and the European Central Bank on Wednesday stepped up its efforts to shield the most vulnerable countries.