PMI: Eurozone Services Sector Contraction Slows in June, Inflation Cools Sharply

Jinshi Data July 3rd - S&P Global Eurozone Services PMI jumped from 47.7 in May to 49.4 in June, contracting for the third consecutive month but above the previous estimate of 48.9, indicating that the contraction in the Eurozone services sector slowed in June and cost pressures dropped rapidly, helping to stabilize the overall economy after two consecutive months of decline. On Thursday, oil prices fell for the third consecutive trading day as Qatar indicated progress in negotiations between Iran and the US over the Strait of Hormuz, easing market concerns about supply disruptions. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said: "The slowdown in the decline of Eurozone services sector business activity in June is welcome news. Combined with growth in the manufacturing sector, this means the overall economy has stabilized after two months of output decline." Williamson added: "Since the outbreak of the Middle East war, a key drag on economic growth has been the surge in energy prices curbing consumer demand, but these inflationary pressures have clearly cooled in June."
(From Jinshi Data App)