The Eurozone economy showed that the composite PMI remained steady at 50.2, marking a sixth straight month of marginal growth. While the headline figure suggests stability, the underlying picture reveals an economy cautiously shifting gears. Manufacturing maintained a slow but steady expansion in output (49.4), now four months running, even as services activity stabilised (50.0) after dipping in May. Encouragingly, new orders nearly flatlined, marking the mildest decline in over a year, while export orders fell only slightly, hinting at improving demand conditions.

Employment edged up again, fuelled by modest gains in services, though manufacturing job losses intensified. Notably, Germany rebounded in new foreign business for the first time in nearly 3.5 years, underscoring emerging green shoots in Europe's industrial powerhouse.

Price trends diverged. Input inflation continued to cool, especially in manufacturing, yet selling prices rose faster than in May, led by strong price hikes in services. Manufacturers cut output prices, responding to weak cost pressures and tepid demand.

Optimism improved across the bloc, particularly in services, lifting sentiment to its highest since January. Despite regional contrasts, the Eurozone seems poised for a cautious but broadening recovery into the second half of 2025. These latest updates take the RPI to 4 and the RPI-P to 4, meaning economic activities continue to remain within the consensus of the eurozone economy.

The consensus looks for the PMI composite at 50.5 for the June flash versus 50.2 in the May final. The PMI manufacturing is seen at 49.7 for June versus 49.4 in the May final. Forecasters expect the services index at 50.0 in June versus 49.7 in in the May final.

The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector business activity by combining information obtained from surveys of the manufacturing and service sectors of the economy. The flash data are released around ten days ahead of the final report and are typically based upon around 75-85 percent of the full survey sample. Results covering a range of variables including manufacturing output, employment, new orders, backlogs and prices are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The survey, produced by S&P Global uses a representative sample of around 5,000 manufacturing and services companies, the former including Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece and the latter Germany, France, Italy, Spain and the Republic of Ireland.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.