Eurozone services PMI beats expectations, rising to 48.9 in June

The surprise upside in the services index complicates the ECB's outlook, arriving as inflation remains sticky and policymakers weigh the pace of future easing.

By Handelsavisen Newsroom · Automated 2026-06-23 08:13 UTC · 1 min read

The Eurozone services purchasing managers' index (PMI) rose to 48.9 in June, surpassing market consensus and signaling a slower-than-feared deterioration in the sector.

The reading improved from 47.7 in May, beating the 48.6 forecast cited by Bloomberg.

2% year-over-year in May—the sharpest increase in over a year—policymakers are facing a complex trade-off between supporting growth and ensuring inflation returns sustainably to target.

While the figure remains below the 50-point threshold that separates expansion from contraction, the upward revision suggests underlying resilience in the region's largest economic sector.

The data point arrives at a critical juncture for the European Central Bank.

With consumer prices accelerating to 3.2% year-over-year in May—the sharpest increase in over a year—policymakers are facing a complex trade-off between supporting growth and ensuring inflation returns sustainably to target.

The stronger-than-expected services activity reduces the immediate pressure on the ECB to cut rates aggressively, reinforcing the view that the central bank will prioritize price stability over near-term growth headwinds.