Eurozone composite PMI climbed to 49.5 in June, signaling stabilization amid lower energy prices and easing inflation pressures.
Eurozone economic activity showed signs of stabilization in June, with the composite PMI rising to 49.5 from 48.5 in May. The uptick, driven by a recovery in services, exceeded expectations and followed a drop in energy prices after the US-Iran deal.
The reading remains below the 50 threshold that separates contraction from expansion, but marks the highest level in three months. Prior prints had hovered near 47-48, reflecting persistent weakness in manufacturing and subdued demand.
Easing price pressures have fueled speculation that the European Central Bank may adopt a more dovish stance in upcoming meetings, though policymakers have yet to signal a shift in policy trajectory.