Key Facts
• June Eurozone Services PMI revised to 50.5, surpassing the neutral 50 mark.
• Initial estimate was 50.0; May’s figure was 49.7.
• Combined Manufacturing and Services PMI rose to 50.6, highest in three months.
• New business index remained below 50 for 13 consecutive months at 49.7.
• Employment index for services stayed above 50 for four months, showing growth.
• Ireland led Eurozone PMI rankings but hit its lowest since January.
• Spain overtook Italy for second place; Germany returned above 50.
• France was the only major economy below 50, marking 10 months of contraction.
• Input prices in services hit a seven-month low but remained relatively high.
• Service prices reached a three-month high, complicating ECB inflation outlook.
• ECB unlikely to be satisfied with accelerating service prices and rising input costs.
Summary
The Eurozone Services PMI for June was revised upward to 50.5, indicating slight expansion, though demand remains weak. The combined Manufacturing and Services PMI reached 50.6, a three-month high. While employment in services continued to grow, new business activity contracted for the 13th consecutive month. Among major economies, Ireland led but saw its lowest PMI since January, while Spain surpassed Italy for second place. Germany returned to expansion, but France remained in contraction for the 10th month. Input prices in services dropped to a seven-month low, yet service prices rose to a three-month high, potentially complicating the European Central Bank’s inflation strategy. Despite some improvements, growth remains subdued, reflecting prolonged weak demand.
