Eurozone business activity contracts again as June PMI slips below 50

Business activity across the eurozone contracted for a second consecutive month in June, according to a flash survey that pointed to renewed weakness in the bloc’s economy.

The HCOB Eurozone Composite Purchasing Managers’ Index fell to 49.5 from 50.2 in May, moving back below the 50-point threshold that separates expansion from contraction. The reading suggests the region lost momentum after briefly returning to growth in the previous month.

PMI surveys are closely watched because they offer an early snapshot of private-sector conditions. A decline below 50 does not confirm an outright recession, but it does indicate that activity is shrinking rather than growing.

The latest figure adds pressure on policymakers as the European Central Bank continues to weigh inflation risks against signs of a fragile recovery. Weak demand, softer business confidence and uneven performance across major economies remain key concerns for the eurozone outlook.