Eurozone composite PMI revised up on stronger services growth
By Benjamin Chiou
Date: Thursday 03 Jul 2025
(Sharecast News) - Private sector activity growth across the eurozone in June was revised higher on Thursday, according to S&P Global and Hamburg Commercial Bank (HCOB), reaching its highest in three months.
The HCOB eurozone composite purchasing managers' index (PMI), which tracks activity across the services and manufacturing sectors, rose to 50.6 in June from 50.2 in May.
This was above the preliminary estimate of 50.2 released last week and the highest reading since March. It was also the sixth straight month above the 50-point mark which separates growth from contraction.
The upgrade was mainly attributable to a 50.5 revised reading for the services PMI, which was increased from the flash estimate of 50.0, up from 49.7 in May.
Rates of growth across both services and manufacturing remained weak, but the ongoing downturn in new orders "showed signs of ending" and the 12-month outlook was the strongest for nearly a year, HCOB said.
Notably, companies across the eurozone hired additional staff for the fourth straight month in June, though weakness in the manufacturing labour market acted as a drag on growth.
"The question is whether a robust recovery is even possible after the sluggishness in the service sector in recent years. This will probably be difficult for the eurozone as a whole, but in Germany, the largest eurozone economy, it is certainly a probable outcome, given the extraordinary stimulus package that the new government is currently putting in place," said Cyrus de la Rubia, HCOB chief economist.
"Even if civil engineering and the defence sector will benefit most from this, the fiscal stimulus is also likely to spread to the service sector, especially in the coming year."
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