FX.co ★ Eurozone Service Sector Growth Slows in August

In August 2025, the HCOB Eurozone Services PMI registered at 50.5, down from July’s peak of 51.0, which was the highest in four months, and also below the preliminary estimate of 50.7. This indicated a more subdued, marginal increase in the service sector's output across the Eurozone, primarily due to unchanged levels in new orders. Nonetheless, positive developments were evident in employment, as job creation surged to its strongest rate since April. Additionally, there was only a slight reduction in backlogs, marking the weakest decline since May 2024. Inflationary pressures escalated during this period, with input cost inflation reaching a three-month peak, and output charges increasing at the quickest rate since March. Lastly, business confidence experienced a minor dip, continuing to lag behind its long-term average.