Eurozone June PMI: Manufacturing Disappoints While Services Hit Expansion Mark

Eurozone PMI Report: Manufacturing Slows, Services Steady

The Eurozone’s economic outlook showed mixed signals in June as the Manufacturing PMI stayed in contraction territory, while Services PMI reached the critical 50 expansion threshold, according to HCOB’s preliminary PMI data released Monday.

Manufacturing PMI Disappoints

The Eurozone Manufacturing PMI for June remained unchanged at 49.4, falling short of the 49.8 market expectation. This indicates that factory activity across the bloc continues to contract, suggesting that industrial demand remains under pressure despite easing inflation and stable interest rates.

Services Sector Edges into Growth

Meanwhile, the Services PMI rose slightly to 50.0, matching expectations and climbing from 49.7 in May. This marks a two-month high and pushes the services sector back into growth territory, though just barely.

Composite PMI Holds Steady

The Eurozone Composite PMI, which blends manufacturing and services activity, stood at 50.2, the same as May’s reading, and slightly lower than the consensus of 50.5. The stagnation suggests the bloc’s economy remains fragile and unevenly recovering.

EUR/USD Reaction

The EUR/USD pair showed limited reaction to the report, holding modest losses near 1.1500. Markets remain cautious as investors weigh whether the European Central Bank (ECB) will adjust policy guidance in response to lingering weakness in the industrial sector.

Internal Linking Suggestions (for Tredu.com):

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• Forex Today: Geopolitics and PMIs Steer the Market Mood