FX.co ★ Eurozone Business Activity Grows Slightly

In June 2025, the HCOB Eurozone Composite PMI held steady from the previous month at 50.2, slightly missing market forecasts of 50.5, as reported by a preliminary estimate. This result marked the sixth month in a row above the threshold indicating expansion, yet it highlighted a subdued growth rate. The activity index for the services sector showed signs of stagnation, registering 50 compared to May's 49.7. Meanwhile, the manufacturing sector's rate of stagnation remained unchanged at 49.4. Across the board, new orders saw a minor decrease, the slowest in the past 13 months, influenced by declining export orders due to a weakening euro and uncertainty surrounding US tariffs. Consequently, companies continued to utilize existing business backlogs, resulting in a slight increase in employment levels. In terms of pricing, input cost inflation eased for the fourth consecutive month, although service providers raised their charges for exports. Looking ahead, business confidence reached its highest point since January.