Eurozone private sector downturn eases in June

23rd Jun 2026 09:43

(Sharecast News) - The downturn in the eurozone private sector eased in June, according to a survey released on Tuesday.

S&P Global's flash eurozone composite output index rose to a three-month high of 49.5 from 48.5 in May. A reading above 50.0 indicates expansion, while a reading below signals contraction.

The flash services PMI business activity index printed at 48.9, also a three-month high, up from 47.7 a month earlier.

The manufacturing purchasing managers' index ticked down to a four-month low of 51.3 this month from 51.6 in May.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The eurozone economy is showing enough resilience to just about stay out of recession. The flash PMI registered only a slight drop in business activity in June, meaning the survey is indicative of unchanged GDP over the second quarter.

"There is welcome news of an easing in the recent downturn in services activity, with tourism and leisure related industries seeing signs of recovering demand after the initial disruptions from the war in the Middle East.

"Manufacturing meanwhile continues to benefit from inventory building as customers front-run future prices rises or supply issues amid ongoing supply fears linked to the war. However, although widespread supply chain delays contributed to further upward pressure on prices, there are signs that concerns over supply and price trends are starting to moderate.

"Encouragingly, lower energy prices are already filtering through to businesses and rates of input cost and selling price inflation have moved lower in June as a result, hinting at a potential peaking of the recent price spike."

ING said: "This still marks sluggish economic activity for the bloc, but the easing of price pressures indicated by the survey is encouraging. The combination of sluggish growth and fading inflation concerns marks a dovish reading for the ECB."