Eurozone private sector grows again, optimism at 1-year high

The eurozone's private sector grew for the sixth consecutive month in June, with employment rising for the fourth month in a row, according to HCOB and S&P Global. While growth remained modest, business confidence for the year ahead hit its highest level in nearly 12 months.

The composite PMI rose to 50.6 (from 50.2 in May), and the services PMI edged up to 50.5.

National data showed diverging trends: Germany improved to 49.7, France to 49.6, while Italy declined to 52.1.

Economist Cyrus de la Rubia noted the sector's long stretch of subdued growth since 2021, but said labor shortages are helping avoid recessions. He sees potential for stronger recovery in Germany, thanks to upcoming fiscal stimulus.