Eurozone Private Sector Expands More Than Estimated

(RTTNews) - The euro area private sector expanded more than previously estimated in June as both manufacturing and services sectors registered higher output, final survey results from S&P Global showed on Thursday. The HCOB final composite output index advanced to 50.6 in June from 50.2 in May. The initial estimate showed that the score held steady at 50.2 in June.

Although the score signaled only marginal growth, it was the highest in three months.

The survey showed that higher output was recorded for the sixth consecutive month and employment increased for the fourth month in a row.

Further, the ongoing downturn in new orders showed signs of ending and the outlook hit the strongest in nearly a year.

On the price front, the survey showed that input price inflation was unchanged from May's six-month low. Manufacturing output prices declined in June whereas service providers lifted their charges at a rate that remained above the long-run average. Among big-four economies, Spain reported the fastest expansion in June. The composite output index stood at 52.1 in June, up from 51.4 in May.

The HCOB services PMI advanced unexpectedly to 51.9 from 51.3 in the prior month. The score was expected to fall to 51.1. Italy's economy expanded for the fifth month running, albeit at the softest rate since March. The composite PMI registered 51.1 compared to 52.5 a month ago. The services PMI declined to 52.1 from 53.2 and was also below the forecast of 52.8. Germany returned to growth with a fifth rise in output in 2025 so far, albeit at a weak pace. The composite output index climbed to 50.4 in June from 48.5 in the prior month. The flash score was 50.4.

At the same time, the services PMI improved more-than-estimated to 49.7 in June from 47.1 in the previous month. The flash reading was 49.4.

France remained the laggard with activity declining for the tenth straight month in June. The HCOB composite output index logged 49.2 in June, broadly unchanged from the reading of 49.3 in May and well above the flash score of 48.5. At 49.6, the services PMI was up from 48.9 in May and the initial score of 48.7.