Eurozone Growth Stalls Amid Geopolitical and Inflation Fears

The eurozone economy stagnated in June, with the Composite PMI steady at 50.2, indicating minimal growth and missing forecasts. Germany's PMI rose to 50.4, showing tentative recovery, while France's index fell to 48.5, highlighting ongoing economic weakness. Manufacturing in the region remains deep in contraction, and services barely expanded. Geopolitical conflicts, including the Israel-Iran war and the ongoing war in Ukraine, have heightened energy prices and uncertainty, weighing on growth prospects. Erratic US trade policy and persistent inflation, particularly in the services sector, are further dampening business sentiment and hiring. Policymakers have limited options as cautious companies hold back on investment and job creation.