Eurozone private sector sees tepid growth, PMI data shows

(Sharecast News) - Private economic activity across the eurozone showed tepid growth again this month, according to a closely watched survey by S&P Global and Hamburg Commercial Bank on Monday. The flash reading of the eurozone composite purchasing managers' index (PMI) came in at 50.2 for June, unchanged from May's reading.

This was the sixth straight month of a reading above the neutral mark of 50.0, which separates growth from contraction, but came in under the consensus forecast of 50.5.

The service-sector PMI rose to 50.0 from 49.7, while the manufacturing PMI was unchanged at 49.4 as the manufacturing PMI out index fell to 51.0 from 51.5.

One bright spark was Germany, which saw a renewed expansion in output in June, rebounding after falling for the first time in five months in May, though activity in France continued to weigh on the headline results as output fell for the 10th straight month.

The rest of the eurozone saw increases in business activity, though the rate of growth slowed to its slowest since November 2024.

"The eurozone economy is struggling to gain momentum. For six months now, growth has been minimal, with activity in the service sector stagnating and manufacturing output rising only moderately," said Cyrus de la Rubia, HCOB chief economist.

"The momentum evident in the official growth figure of 0.6% for the first quarter is unlikely to have carried over into the second quarter, especially since special factors such as Ireland's unusual jump in growth inflated this figure. However, there is no reason to be resigned, as the outlook has brightened according to the survey and companies are keeping employment roughly constant."