FX.co ★ Downturn in Eurozone Services Sector Eases in June

The Eurozone Services PMI Business Activity Index rose to 48.9 in June 2026, its highest level in three months and above market expectations of 48.5, after 47.7 in May. The data signal a slower decline in services activity and tentative signs of stabilisation in business conditions. New business continued to contract, but at a reduced pace, while input cost pressures eased and output price inflation also moderated over the month. Labour market conditions improved, with services firms reporting a renewed, albeit modest, increase in staffing levels. Business confidence strengthened, indicating more optimistic expectations for future activity. However, most responses for the June flash PMI were collected before the 17 June signing of the memorandum of understanding between the US and Iran to halt hostilities, so the latest improvement does not fully capture the potential effects of easing geopolitical tensions.