Eurozone services sector returned to moderate growth in June

The eurozone services PMI, compiled by S&P Global, rose from 49.7 in May to 50.5 in June. The composite PMI jumped to 50.6, reaching a three-month-high, but still indicating only modest growth, Reuters reports.

At the same time, overall new orders declined for the 13th month in a row. Despite this, EU service sector companies continued hiring, maintaining the trend of job creation.

Business confidence among eurozone service providers surged to its highest level in 2025. However, the reading remained below the long-term average. Input cost inflation in the services sector slowed to a seven-month low but stayed significant. Meanwhile, service prices rose at the fastest pace in three months. This could complicate the European Central Bank's (ECB) inflation forecast, despite its recent monetary policy easing.

According to analysts surveyed by Reuters, the ECB is expected to cut interest rates again in September.