Eurozone PMI Services was finalized at 50.5 in June, up from 49.7 in May. Composite PMI ticked up to 50.6 from 50.2. Although the bloc returned to modest expansion, performance remained uneven across major economies. Germany hit a three-month high at 50.4, while France fell to 49.2. Ireland, despite slowing to a five-month low, remained the strongest performer at 528. Spain (52.1) saw a slight pickup, while Italy’s reading slipped to 51.1.
Cyrus de la Rubia of Hamburg Commercial Bank noted that the services sector has been “more or less stagnant” since April. Nevertheless, Persistent labor shortages have discouraged firms from cutting jobs, helping stabilize private consumption. But a full recovery still looks elusive, with structural weaknesses continuing to weigh on growth momentum across much of the bloc.
Notably, rising input and output prices in services could be an unwelcome sign for the ECB. However, de la Rubia emphasized that broader disinflationary forces, such as Euro strength and tariff-driven downside risks, may outweigh the uptick in services inflation. While price pressure in services remains on the radar, it’s significance is “receding somewhat into the background”.
 saw a slight pickup, while Italy’s reading slipped to 51.1.){kind=link}