Eurozone business activity rose at a marginally faster pace in June, helped by stronger services demand that outweighed a deeper downturn in manufacturing, according to a closely watched survey.

The latest reading suggests the bloc remains on a slow-growth path, with factories still under pressure while service-sector firms provided the main support to overall activity. The mixed picture points to an economy that is improving only modestly rather than gaining broad momentum.

Economists will watch the data closely for clues on the European Central Bank’s next moves. Softer manufacturing and uneven growth across the region are likely to reinforce expectations that policymakers may still have room to lower interest rates later this year.

While the June figures indicate some resilience, they also underline how fragile the recovery remains. For households and businesses across the eurozone, the challenge is whether stronger services can keep compensating for weakness in industry long enough to sustain a wider turnaround.