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The S&P Global Flash Eurozone Composite PMI rose to 49.5 in June 2026 from 48.5 in May, beating forecasts of 49.1. This marked a three-month high and indicated a slower pace of contraction in private sector activity. The downturn in services also moderated (47.7 vs. 48.9), while growth in manufacturing output eased to a five-month low (51.2 vs. 51.3). New orders continued to decline and employment edged down slightly.
At the same time, inflationary pressures showed further signs of cooling: input costs increased at the slowest rate since the onset of the war in the Middle East, and output prices rose at the weakest pace in three months. Manufacturers again reported markedly longer suppliers’ delivery times, and the recent uptick in purchasing activity came to a halt. Even so, business confidence improved for a second consecutive month.
