June data shows Eurozone economic activity remains weak but improves slightly as inflation concerns ease.
Eurozone composite PMI climbed to 49.5 in June from 48.5 in May, signaling persistent but moderating economic weakness. The reading remains below the 50 threshold, indicating contraction, though the pace of decline has slowed.
The prior month’s print stood at 48.5, with economists expecting a modest rebound. While growth remains sluggish, easing price pressures in the survey suggest inflationary headwinds may be abating, offering a mixed but cautiously optimistic signal for policymakers.
The data reinforces expectations of a dovish monetary policy stance as the European Central Bank balances weak activity with cooling inflation.