LONDON — Private business activity in the eurozone slipped into contractionary territory in June as the services sector began to show signs of weakening, the S&P Global survey showed on Wednesday.
The HCOB PMI composite, seen as a reliable barometer of developments in broader economic activity, fell to 49.9 last month, a six-month low, from 52.8 in May.
A first estimate had given it at 50.3.
The index fell below 50 points, meaning activity contracted in June.
“The momentum of the main eurozone countries has almost entirely lost momentum: the slowdown in activity growth has been accompanied by a weaker increase in new orders, more modest price increases, and ‘a deterioration in business prospects,’ said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
The PMI for the services sector alone also fell to 52.0 from 55.1 in May, below the “flash” estimate that gave it at 52.4.
The only positive indicator, the composite producer price index fell from 56.4 to 53.8 in June, its lowest level since March 2021, which suggests that inflationary pressures are easing.
(Report Jonathan Cable, Corentin Chapron, edited by Blandine Hénault)
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