Eurozone Manufacturing Holds Steady Amidst Service Sector Slump

The S&P Global Eurozone Manufacturing PMI reached 51.4 in June, dipping slightly from May’s 51.6 but remaining safely above the 50.0 threshold that separates growth from contraction. This performance, which edged past the preliminary estimate of 51.3, highlights a resilient core even as the bloc faces its slowest overall growth since February.

Factory output climbed despite regional disparities, with production declines in France and Spain offset by gains elsewhere. As the European Central Bank maintains its focus on curbing energy-driven inflation through interest rate hikes, manufacturers report easing input costs. This shift in pricing dynamics, paired with rising business confidence, provides a buffer against the sluggish export demand that continues to weigh on the wider economy.