Eurozone composite PMI beats forecasts at 49.5 but core economies show persistent weakness, pressuring ECB rate hike outlook.
Eurozone composite PMI rose slightly to 49.5 in the latest print, exceeding consensus estimates of 49.2. Manufacturing expanded at 51.3, though below the expected 51.6, while services lagged in key markets.
Germany’s services PMI fell to a 43-month low of 46.8, offsetting flat manufacturing at 50.0. France also underperformed, reinforcing concerns over demand conditions in the bloc’s largest economies. Softer inflation signals in the data further challenge the ECB’s tightening stance.
The weak core performance and easing price pressures may reduce expectations for additional ECB rate hikes, weighing on the euro.