AI Data Insight
The flash Eurozone Composite PMI for the second quarter of 2026 fell to 47.5, sliding further from the previous reading of 48.6 and missing market expectations of 48.8, falling below the 50-point boom-or-bust threshold for the second consecutive month. The significant contraction in the service sector and the surge in energy costs triggered by the Middle East conflict are the main dragging factors. Looking ahead, the European Central Bank (ECB) will face tougher policy decisions amidst the dual challenges of rebounding inflation and economic recession.