Business activity across the eurozone fell in June for the first time in three years, according to a closely watched survey that pointed to weakening conditions in both services and manufacturing. The reading suggests the bloc is losing momentum after a prolonged stretch of expansion.

The downturn came as higher U.S. tariffs and a broader global slowdown added pressure to exporters and service providers alike. Companies across the currency union have faced softer demand, higher costs, and growing uncertainty over trade policy.

The survey’s decline will likely add to concerns inside the European Central Bank, which has been monitoring whether sluggish growth is becoming more entrenched. Economists say persistent weakness could complicate efforts to support the economy without reigniting inflation.

For workers and businesses in the eurozone, the latest figures point to an increasingly fragile economic outlook. With trade tensions still unresolved and external demand cooling, the region may struggle to regain stronger growth in the months ahead.