Based on 85% of the monthly replies, both euro zone manufacturing and services PMI dropped significantly in June. According to the first estimate, euro zone manu-facturing PMI dropped from 54.6 to 52.0, while a more moderate decline was ex-pected (to 53.8) and after already a sharp decline in the month before (from 58.0 to 54.6). This outcome provides further evidence that growth has lost momentum and more surprisingly, at a razor-sharp pace. Euro zone manufacturing PMI is now at an at lowest level in 18 months and new orders contracted for the first time since July 2009. Euro zone services PMI surprised on the downside of expectations too. Services PMI fell from 56.0 to 54.2, while a the consensus was looking for a drop to only 55.3. German services PMI, on the contrary, improved from 56.1 to 58.3, while in France, services PMI fell from 62.5 to 56.7. These data are clearly disap-pointing, with manufacturing growth now close to stagnation. The Greek debt crisis might have weighed on sentiment and also the situation in Japan might have had a negative impact, but these very weak figures still suggest that growth is slowing brusquely in the second quarter.