Eurozone Activity Remains Lacklustre As Price Pressures Ease

The Eurozone composite PMI rose to 49.5 in June, reflecting ongoing economic contraction. However, softening price pressures provide a dovish signal for future ECB monetary policy.

Key Takeaways

• 1.The Eurozone composite PMI increased slightly to 49.5 in June, signaling continued sluggish economic activity.
• 2.Inflationary pressures are softening, with input cost increases slowing for both manufacturing and services.
• 3.The current economic environment provides a dovish signal for the European Central Bank, suggesting a potential deterrent to aggressive rate hikes.

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