Euro: Softer PMIs challenge ECB tightening case – BNY
By FXStreet Insights Team
Updated: 23 Jun 2026
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Geoff Yu at BNY highlights that Eurozone PMIs remain weak despite a slightly better-than-expected composite reading. Core economies like Germany and France continue to underperform, with German services at a 43‑month low.
Geoff Yu at BNY highlights that Eurozone PMIs remain weak despite a slightly better-than-expected composite reading. Core economies like Germany and France continue to underperform, with German services at a 43‑month low. Softer inflation pressures in the PMI data raise questions over the European Central Bank’s assessment of demand and the necessity of further rate hikes, weighing on the Euro.
Weak core data and easing price pressures
"The composite Eurozone PMI was better than expected at 49.5 (consensus: 49.2), and manufacturing also showed some expansion at 51.3 (consensus: 51.6)."
"However, the core names such as Germany and France continued to perform poorly."
"German manufacturing PMI was flat at 50.0, but services fell to a 43-month low of 46.8."
"The figures will certainly lead to questions over the ECB’s current assessment of Eurozone demand conditions to justify tightening."
"Reports of softer inflation pressures in the reports also lead us to question the necessity of further hikes."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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