July flash PMI data shows euro area business activity expanding for the first time since March, driven by stronger demand and output.
Eurozone business activity expanded in July for the first time in four months, with the flash composite PMI rising to 51.9 from 50.3 in June. The increase was led by a rebound in services to 51.6 and a three-month high in manufacturing at 52.0, both exceeding expectations.
The services sector reached a five-month high, while manufacturing output surged to a 52-month peak, particularly in Germany. New orders grew for the first time since February, marking the fastest pace since April 2023, though employment gains remained marginal.
Input cost inflation eased to its lowest level since February but remained elevated. Geopolitical risks, including renewed Middle East tensions, could weigh on the sustainability of the recovery after a stagnant second quarter.