EU private sector PMI barely rose in June amid global geopolitical uncertainty

Business activity in the eurozone’s private sector showed almost no growth in June. Unpredictable US trade policies and global geopolitical tensions are preventing companies from formulating clear forward strategies, Bloomberg reports.

The Composite Purchasing Managers’ Index (PMI) by S&P Global held at 50.2, missing economists' consensus forecast of 50.5. The services PMI retreated to the 50.0 threshold, while manufacturing remained contractionary at 49.4, with no signs of recovery for three years.

According to Bloomberg, economic growth in the region will remain subdued in the second quarter, aligning with the agency’s analyst estimates. Experts had anticipated stagnation in the bloc’s GDP during this period due to the Trump administration’s import tariffs on key trading partners and heightened Middle East geopolitical tensions.

National PMI readings were mixed. Germany’s indices returned to growth after just one month of contraction, while France’s figures remained below the 50-point threshold, the agency reports.