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Services in the euro area are related to growth in June

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The service sector, which is the basis of the eurozone economy, resumed its growth in June last year after a small shrinkage in May, which preceded it, but the rate of this growth remained limited in the light of continuing weak demand, despite the improvement of business confidence, according to the scanning survey on Thursday.

According to the survey, the service sector manager in the euro zone, which was prepared by Standard & Poor Global, increased to 50.5 points in June compared to 49.7 points in May, exceeding the initial estimate of 50 points. According to Reuters, the indications above 50 indicate an increase in activity, while indications without this level indicate a reduction.

“This period is the longest series of relatively weak growth, a period that has not been registered for 27 years of data for the procurement manager.”

A complex indicator of procurement managers, which includes industrial and services, increased slightly to 50.6 points in June compared to 50.2 points in May, its highest level in 3 months, but still reflects modest growth. A quick index rating was 50.2 points.

The complex index showed a decrease in general new works within the 13th month in a row, but the pace of this decrease slowed to a small level by 49.7 points. Despite this, employment companies continued the fourth month in a row to support a series of creating jobs that lasted about 4 and a half years.

From the point of view of national results, Ireland has retained the lead between the economy of the Great Eurinth region during the fourth month in a row, despite the slowdown to the weakest level since January last year. Spain took second place, while Germany returned to the expansion zone. France remained the only main economy that is still in regret, recording a retreat during the tenth month in a row.

While business trust has improved between service providers to the highest levels from the beginning of 2025, recovering after its lowest level in 29 months registered in April, it is still without its long -term interval.

As for the price aspect, the inflation of the entrance price slowed to the lowest level in 7 months, but it remained relatively high, while the sale prices increased at the fastest pace in 3 months, which could complicate the mission of the “European Central Bank” to contain inflation, despite the recent decrease in interest rates.

“It is unlikely that the European Central Bank will feel complete satisfaction with high sales prices in the service sector during June, as well as the acceleration of input prices again,” said de la Rubia. He explained that the Central Bank, a year after the reduction in interest, will probably be presented for an additional reduction in September next year, according to a survey conducted by Reuters last week.

In Germany, the service sector showed signs of stability at the end of the second quarter, since in June only a small decline was registered. The final procurement manager for the HCOB service sector increased to 49.7 in June, from the lowest level in two and a half years, registered in May, which is 47.1, which slightly exceeded the initial reading of the month on June 49.4.

“Over the past three months, service providers have experienced a difficult period,” said de la Rubia, noting that the activity in this sector has become more volatile since 19. ”

The survey revealed a slowdown in new works, as well as a decrease in the size of the 14th month in a row. Employment continued to grow within the sixth month in a row, referring to companies, striving to expand their operating capabilities.

De La Rubia commented: “If we look positively, this trend can be explained as an expression of trust of service providers by increasing demand in the near future.”

De La Rubia expected that economic growth in Germany testifies to the recovery in the second half of the year with partial support from the state motivation package, which would win not only in the construction and industry sectors, but also in the services sector.

A complex indicator of procurement managers in Germany, which includes services and production industry, in June grew to 50.4 points compared with 48.5 points in May.

In France, the services sector showed references to stability in June with a slowdown in the pace of business activity to the slowest level for 9 months.

The final procurement managers of the services sector in France, in a survey issued by the Hamburg Commercial Bank, in June grew to 49.6 points compared to 48.9 points in May, indicates a very small reduction in activities. The initial reading of the index was 48.7 points.

Jonas Feldhausen, a “beginner economist” in Hamburg Commercial Bank, said that a standard and poor global study showed an improvement in new requests for export and growth in business trust, but uncertainty in the customs duties that US President Donald Trump intends to impose, continues to gain his weight for moral weight.

“French service providers have improved significantly in June,” added Fieldhausen. It is expected that the pressure reduction in inflation and a smaller monetary policy will maintain the consumption of families and business investments over the next year.

He continued: “But the state of ambiguity surrounding potential customs measures can negatively affect moral spirit in the short term. In the light of the continuing weak demand of the company’s sector, they study the way to increase efficiency and increase costs.

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