Business activity in the eurozone was stable in June 2025, with the HCOB Flash Eurozone PMI standing at 50.2 for the month, the same as the previous month.
The services index stood at 50.0 for the month (up from 49.7 in May), which was a two-month high, while the manufacturing output index was at 51.0 (down from 51.5), marking a three-month low, according to the data.
‘Sustained increases in manufacturing production coincided with a stabilisation of services business activity,’ S&P Global noted in the report. ‘New orders decreased again, but at the slowest pace in over a year, while business confidence improved to the strongest since the start of 2025.’
Demand stabilises
While new orders declined in the period, they also indicated a stabilisation in demand – manufacturing orders stopped falling for the first time in more than three years, while new export orders declined at the least-marked extent since April 2022.
Employment rose marginally in June, with the pace of job creation unchanged since May – the services sector was the key driver of growth in this area, seeing a ‘modest’ rise in staffing levels, while manufacturing saw a sharper reduction in workforce numbers.
In terms of pricing, the pace of input cost inflation eased for the fourth consecutive month in June, and stood at its weakest level since last November. Services firms continued to face elevated costs, while manufacturing prices fell for the second month in a row.
‘Struggling to gain momentum’
“The eurozone economy is struggling to gain momentum,” Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented. “For six months now, growth has been minimal, with activity in the service sector stagnating and manufacturing output rising only moderately. […] However, there is no reason to be resigned, as the outlook has brightened according to the survey and companies are keeping employment roughly constant.
“Delivery times increased in June. Given the weak order situation and only moderate growth in production, this may be related, among other things, to the new geopolitical crises and the variable tariff policy of the US. Both factors are making supply chain management more difficult. Overall, however, the delivery time indicator shows that most companies are relatively good at adapting to uncertainty and that there have been no major disruptions so far.” Read more here.
