Downturn in Eurozone Services Sector Eases in June

2026-06-23 08:14 By Agna Gabriel 1 min. read

The Eurozone Services PMI Business Activity Index improved to 48.9 in June 2026, the highest level in three months and above market expectations of 48.5, compared with 47.7 in May.

The data pointed to a slower decline in services activity, with business conditions showing signs of stabilisation.

New business continued to fall, but the pace of contraction eased, while input price growth weakened and output price inflation also slowed during the month.

Employment trends improved, with services companies recording a renewed, although marginal, increase in staffing levels.

Business confidence strengthened, suggesting improved expectations for future activity.

Most responses included in the June flash PMI survey were collected before the June 17 signing of the memorandum of understanding between the US and Iran to halt hostilities, meaning the latest improvement does not fully reflect the potential impact of easing geopolitical tensions.



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Downturn in Eurozone Services Sector Eases in June
The Eurozone Services PMI Business Activity Index improved to 48.9 in June 2026, the highest level in three months and above market expectations of 48.5, compared with 47.7 in May. The data pointed to a slower decline in services activity, with business conditions showing signs of stabilisation. New business continued to fall, but the pace of contraction eased, while input price growth weakened and output price inflation also slowed during the month. Employment trends improved, with services companies recording a renewed, although marginal, increase in staffing levels. Business confidence strengthened, suggesting improved expectations for future activity. Most responses included in the June flash PMI survey were collected before the June 17 signing of the memorandum of understanding between the US and Iran to halt hostilities, meaning the latest improvement does not fully reflect the potential impact of easing geopolitical tensions.
2026-06-23
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The S&P Global Eurozone Services PMI inched higher to 47.7 in May of 2026 from the five-year low of 47.6 in the previous month, revised sharply higher from the preliminary estimate of 46.4 to align with the earlier market expectations. New business inflows continued to decline, consistent with the lower purchasing power for clients since the outbreak of war in the Middle East triggered a surge in energy costs. Despite the sharp increase in input costs, output charges rose at a softer pace. Consequently, firms tapped their backlogs to soften the drop in output. The lower need for capacity drove employment levels in the services sector to drop for the first time since January of 2021. Looking ahead, business confidence improved slightly from the previous month but remained below historical averages.
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The S&P Global Eurozone Services PMI fell to 46.4 in May 2026 from 47.6 in April, below forecasts of 47.7, preliminary estimates showed. The reading pointed to the largest contraction in services sector activity since early 2021, with business activity decreasing solidly and new export orders also falling. In addition, price pressures remained elevated due to disruptions caused by the war in the Middle East and there was the first scaling back of workforce numbers since the start of 2021. In addition, service providers were at their least confident since September 2022.
2026-05-21