The Eurozone Services PMI Business Activity Index rose to 49.4 in June 2026 from 47.7 in May, revised up from the preliminary estimate of 48.9 and surpassing market expectations of 48.5. This marked the mildest contraction in the bloc’s services activity since the outbreak of war in the Middle East triggered an energy shock for European importers.
New business volumes declined at a slightly faster rate than in the previous month. As a result, companies accelerated the depletion of outstanding work to support current output. Despite weaker client demand, firms increased staffing levels again following a brief pullback in the second quarter.
The renewed hiring aligned with improved business sentiment, underpinned by easing energy prices from their earlier peaks and a moderation in the rise of borrowing costs. Input cost inflation in the services sector also declined, slipping for the first time since October of the previous year.
