Euro Area Composite PMI Holds at 49.5 in June, Signaling Contraction
Euro area business activity remained in contraction in June with the composite PMI at 49.5, according to Nomura strategists, pointing to weak growth and persistent price pressures.
Nomura strategists note that Euro area business activity stayed in contraction territory in June. The composite Purchasing Managers' Index (PMI) came in at 49.5, slightly below the 50 threshold that separates expansion from contraction.
Despite the soft economic momentum, the report highlights that price pressures remain sticky. This combination of weak growth and stubborn inflation presents a challenging backdrop for the European Central Bank's policy outlook.
The data suggests the Eurozone economy is still struggling to gain traction, with manufacturing and services sectors both showing signs of subdued demand.
Source: FXStreet Forex News