Eurozone PMI: Economy Stays Out of Recession as Services Recover

Eurozone June PMI data showed the bloc’s economy stabilizing and avoiding recession for now, which is mildly supportive for European risk assets and the euro-zone equity backdrop. The Flash Composite PMI rose to 49.5 from 48.5, a three-month high and just below the 50 expansion threshold. Services improved to 48.9 from 47.7, offsetting a slight easing in manufacturing. The report suggests flat second-quarter GDP growth rather than contraction. Lower energy prices are helping ease input and selling-price inflation, while supply-chain concerns appear less severe. Overall, the data point to a fragile but improving recovery, with lower oil prices providing an important tailwind.