Eurozone merchandise trade cooled sharply in June, with Eurostat reporting an unadjusted surplus of €7.0 billion, less than half the €16.2 billion recorded in May and well below market expectations of around €13 billion. On a seasonally adjusted basis, the surplus narrowed to €2.8 billion. The deterioration was driven by a 6.8% jump in imports to €230.2 billion, while exports were broadly unchanged. Compared with June 2024, the bloc’s trade surplus has fallen by about two-thirds, underlining the impact of firmer domestic demand and higher input costs on Europe’s external accounts. Spain mirrored the regional trend, posting a €3.6 billion deficit for the month, up from €2.5 billion in May. Separate data from the European Central Bank showed the Eurozone’s current-account surplus expanded to €35.8 billion in June from €32.3 billion the month before, buoyed by stronger primary-income flows. Over the 12 months to June, the adjusted surplus amounted to 2.0% of GDP, down from 2.6% a year earlier, suggesting that a firmer income balance is partly offsetting the weakening goods trade.