Services PMI 48.9 vs 48.6 expectedPrior 47.7Manufacturing PMI 51.3 vs 51.6 expectedPrior 51.6Composite PMI 49.5 vs 49.1 expectedPrior 48.5The readings are better than estimated after a mixed showing between France and Germany earlier. But at the balance, it points to a slower downturn in euro area business activity in wrapping up Q2 2026.The most important chart is still this one though:The good news is that the rate of inflation eased to the slowest sinceFebruary, just before the Middle East conflict began. Weaker increases in input prices were seen across both themanufacturing and service sectors, with the pace of inflationremaining sharper in the former.However, they remain markedly higher compared to levels before the war started so there is that to keep in mind.Besides that, euro area manufacturers continued to report lengtheningsuppliers' delivery times with the latest deterioration in vendor performance keeping rather substantial even if the least pronounced since March.While there is some room for optimism, it is still too early to say if this will be the end of the stagflation scare for the euro area economy heading into the summer. This article was written by Justin Low at investinglive.com.