Euro-zone PMIs suggest rental values will not stabilise this year

June’s flash PMIs for the euro-zone showed a modest improvement compared to May, largely driven by a rise in the manufacturing index. Falls in the service sector index, however, suggest that occupier demand conditions in euro-zone office markets got a touch worse in June. That said, the surveys already point to a marked easing in the rate of economic contraction. But as property tends to lag developments in the wider economy, the floor for rental values is unlikely to be reached soon.