ING analyst Bert Colijn said June euro-area PMI still shows overall business
activity in contraction, but easing energy prices have reduced price pressures.
Input-cost growth in both manufacturing and services slowed and firms’ own price
increases were smaller than in May. Weak growth combined with subsiding inf will
curb the ECB’s appetite for large rate hikes, as the current inf backdrop is
insufficient to justify significant policy tightening.
