Eurozone business activity strengthens in July

5th Aug 2026 09:15

(Sharecast News) - Eurozone business activity strengthened in July, with the bloc's private sector expanding at its fastest pace in eight months, according to data published on Wednesday.

The S&P Global Eurozone Composite PMI rose to 52.0, up from 50.0 in June, signalling a solid improvement in economic momentum at the start of the third quarter.

The rebound was driven largely by services, where the PMI climbed to 51.7 from 49.4, marking a return to growth and a five‑month high. Firms reported firmer demand, improved client confidence and a pick‑up in new business, which rose at the quickest rate since last November.

Manufacturing also contributed to the stronger reading. The factory PMI increased to 51.9, compared with 51.4 in June, its highest level since April. Output expanded at the fastest pace in more than two years, supported by easing supply constraints and a modest recovery in export orders.

S&P Global said price pressures continued to cool across the bloc, with input costs rising at their slowest pace since early 2021. Output charges also moderated, suggesting inflationary pressures are becoming less of a drag on activity.

Economists said the latest figures point to a more resilient eurozone economy than previously expected, though the pace of expansion remains modest and uneven across member states.

Reporting by Frank Prenesti for Sharecast.com