Eurozone flash PMIs offered little cause for celebration in June, as the economy continued to tread water. PMI Composite held steady at 50.2. PMI Manufacturing was unchanged in contraction at 49.4. Services ticked back from 49.7 to the 50.0 mark, barely returning to expansion.
According to Hamburg Commercial Bank’s Cyrus de la Rubia, the bloc is “struggling to gain momentum,” with both manufacturing and services showing only marginal progress. Germany showed faint signs of improvement, but France continues to act as a drag. Still, firms remain cautiously optimistic: employment has been broadly stable, and expectations have improved modestly according to the survey.
For ECB, while services inflation remains “slightly tense” due to sticky input costs, this is counterbalanced by disinflation in goods and the dampening effects of a strong Euro and US tariffs. Energy prices—now rebounding due to Middle East tensions—could become a concern, though much of the impact is not yet captured in the current PMI readings.
