The eurozone’s latest PMI reading of 49.5 indicates slowing contraction but remains below the 50 threshold for growth.
The eurozone’s purchasing managers’ index climbed to 49.5 in the latest survey, up from previous levels but still below the 50 mark that separates expansion from contraction. The reading suggests business activity is shrinking at a slower pace rather than recovering.
Prior surveys had shown deeper contraction, with the index consistently below 50 for months. Economists had anticipated a modest improvement, though not a return to growth. The data reflects persistent weakness in the region’s manufacturing and services sectors.
The euro showed limited reaction to the release, as markets had already priced in subdued economic conditions ahead of the report.