Euro Zone Economy Sees Eight-Month High in July

The euro zone economy showed signs of resilience in July as business activity rebounded to an eight-month high. The S&P Global Euro Zone Composite PMI rose to 52.0, a tad above its preliminary estimate of 51.9, and marked the first time in expansion territory since March.

According to Chris Williamson, chief business economist at S&P Global Market Intelligence, 'July's final PMI adds to a picture of encouraging resilience of the euro zone economy amid the ongoing conflict in the Middle East, but also underscores how the business climate is being steered by the changing geopolitical landscape.'

The services sector led the rebound, with the S&P Global Services PMI climbing to a five-month high of 51.7. Germany and Italy saw stronger growth, while Spain posted its best performance in over a year and a half. France remained the outlier, with activity continuing to contract.

Employment stabilized in July, ending a six-month run of job losses, and business confidence rose to a five-month high. However, input cost inflation eased to a five-month low, but still remains elevated relative to historical survey averages.