Eurozone business activity edged up in June, but the improvement was modest and masked a renewed setback in services, according to a closely watched survey.

The private-sector reading showed a small gain driven by manufacturing, while the region’s larger services industry contracted for the first time in nearly two years. The split points to a fragile recovery that remains uneven across the currency bloc.

The latest figures add to the challenge facing policymakers at the European Central Bank, which is monitoring whether slowing inflation and soft growth will justify further changes in interest rates. For now, the survey suggests the eurozone is still struggling to build broad-based momentum.

Economists will be watching upcoming data closely to see whether June marked a temporary pause or the start of a weaker stretch for Europe’s economy. The numbers also underscore how dependent the region remains on a narrow manufacturing rebound at a time when consumer-facing activity is losing steam.