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Eurozone Flash Composite PMI rises to 51.9, signaling output growth
The survey showed manufacturing output growing at the fastest pace since March 2022, while input cost pressures eased to the lowest since the Middle East conflict began.
Eurozone business activity returned to expansion in July, with the Flash Composite PMI rising to 51.9 from 50.0, its highest level in five months and indicating a first increase in private-sector output in four months, according to Action Forex.
The rebound was broad-based, led by manufacturing, where the Manufacturing PMI climbed to 52.0 from 51.4 and the Manufacturing Output Index rose to 53.0 from 51.7, its strongest production growth since March 2022. Services also turned positive again, with the Services PMI Business Activity Index increasing to 51.6 from 49.4 after three straight months of contraction.
S&P Global cited stronger demand across sectors and a first increase in employment this year, while business confidence improved to its highest level since February. Regional data also improved, with Germany returning to growth for the first time in four months and France showing a much smaller contraction than before, Action Forex said.
The PMI survey included inflation-related signals, with input cost pressures easing to their lowest level since the outbreak of the Middle East conflict and selling price inflation moderating in both manufacturing and services. The report said that could reduce near-term pressure on the ECB to tighten further, though it cautioned that oil price increases and shipping disruptions could quickly revive inflation risks and stress supply chains.