Eurozone June Final Services PMI Exceeded Forecast
Business activity across the Eurozone accelerated slightly faster than previously awaited last month, but firms were at their gloomiest since late 2016. Eurozone services PMI rose to a four-month high of 55.2 in June from 53.8 in May. That increase came despite firms raising their charges much more sharply. The services output prices PMI bounced to a five-month high of 53.2 from 52.0.
IHS Markit's Final Composite Purchasing Managers' Index grew to 54.9 in June from May's 54.1. That exceeded an earlier flash reading of 54.8, but the latest PMI is lagging much higher numbers from around the turn of the year.
Meanwhile, the future output index, which tracks business optimism, dropped to 63.4 from 63.7 (its lowest since November 2016). According to analysts, a weakening in business optimism to the lowest for over 1-1/2 years reflects intensifying nervousness about the outlook for the economy, notably in manufacturing, as trade-war talk escalates.
Earlier this week, the Eurostat reported, that the Eurozone manufacturing PMI declined to a one-and-a-half-year low of 54.9 in June from 55.5 in May.