- Services PMI 48.9 vs 48.6 expected
- Prior 47.7
- Manufacturing PMI 51.3 vs 51.6 expected
- Prior 51.6
- Composite PMI 49.5 vs 49.1 expected
- Prior 48.5
The readings are better than estimated after a mixed showing between France and Germany earlier. But at the balance, it points to a slower downturn in euro area business activity in wrapping up Q2 2026.
The most important chart is still this one though:
The good news is that the rate of inflation eased to the slowest since
February, just before the Middle East conflict began. Weaker increases in input prices were seen across both the
manufacturing and service sectors, with the pace of inflation
remaining sharper in the former.
However, they remain markedly higher compared to levels before the war started so there is that to keep in mind.
Besides that, euro area manufacturers continued to report lengthening
suppliers’ delivery times with the latest deterioration in vendor performance keeping rather substantial even if the least pronounced since March.
While there is some room for optimism, it is still too early to say if this will be the end of the stagflation scare for the euro area economy heading into the summer.
This article was written by Justin Low at investinglive.com.
