Eurozone Composite PMI Rises to 51.9 in July, Returning to Expansion for the First Time in Four Months

⑴ The eurozone’s S&P Global Composite PMI rose to 51.9 in July from 50.0 in June, significantly higher than the market expectation of 50.3, marking the first expansion in business activity in four months. This was driven by renewed growth in the services sector and the fastest manufacturing output expansion since March 2022. Germany saw growth for the first time in four months, France’s contraction slowed to a slight decline, and other regions in the eurozone recorded the strongest expansion in eight months.⑵ The pace of new orders was the fastest since April 2023, with export orders seeing the smallest decrease since March 2022. Employment grew for the first time this year, and easing supply chain pressures enabled manufacturers to rebuild input inventories for the first time in three years. Both input costs and output price inflation slowed. Business confidence improved to a five-month high but remains below pre-conflict levels.