EZ PMI dropped sharply indicating businesses still worry about the economy

21.06.24

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Both Manufacturing and Services PMIs dropped in June in Eurozone, regardless of ECB’s efforts to support economic activity by cutting rates.

Services PMI still stays above positive level of 50, while Manufacturing stopped recovery from the depth of negative zone.

Data plays against ECB’s assessment that manufacturing sector is showing signs of stabilization at low levels.

Data will add to ECB’s willingness to further ease policy.