Eurozone business activity shrank for a second straight month in June, according to preliminary S&P Global survey data, signaling that the region’s recovery remains fragile. The latest purchasing managers’ index pointed to a broad slowdown across the bloc.

Both manufacturing and services weakened during the month, suggesting that demand was softening in more than one part of the economy. The data adds to concerns that companies are facing a difficult mix of weak orders, cautious consumers, and ongoing uncertainty in the wider economic outlook.

The figures will be closely watched by the European Central Bank, which has been trying to balance inflation control with signs of slowing growth. A continued contraction in private-sector activity could reinforce expectations that policymakers will remain cautious in the months ahead.

While the PMI is only a snapshot of business sentiment, the June reading suggests the eurozone is still struggling to build momentum. Economists will now look for signs that any weakness is temporary, or whether the slowdown is becoming more persistent.