Germany June Services PMI Revised Higher to 48.6, Slowing Contraction

Germany's final June services PMI rose to 48.6 from a 46.8 preliminary reading, while the composite PMI improved to 49.5, indicating the economy is still contracting but at a slower pace than first feared. The data follows last week's softer-than-expected June CPI print of 2.3% year-on-year and stable unemployment at 6.3%, reinforcing expectations that the ECB will hold rates steady in July after its June cut. Input price pressures eased to a seven-month low, supporting the view that September remains the next plausible window for further easing and providing mild relief for German equity sentiment.