FX.co ★ Eurozone Services Activity Returns to Stability

The HCOB Eurozone Services PMI increased to 50.0 in June 2025, up from 49.7 in May, aligning with market forecasts, according to preliminary estimates. This figure indicates that the services sector has stabilized after experiencing a slight contraction, buoyed by a sequence of four consecutive months of rising activity. Nevertheless, the growth rate slowed to a three-month low in June. Concurrently, new orders in the manufacturing sector remained unchanged, halting a downturn that had persisted for over three years. Despite Eurozone manufacturers continuing to scale back their purchasing activity in June, the drop was moderate and among the least severe in the past three years. Additionally, employment in the sector saw a significant decline, with job losses increasing at a faster rate than in May. On the pricing side, manufacturing input costs decreased for the third month in a row, while output prices were reduced for the second consecutive month. Looking forward, manufacturers expressed heightened optimism regarding the prospects for the coming year.