Eurozone Business Activity Rebounds in July Amid Ongoing Risks

Business activity in the eurozone rebounded in July, marking the first growth since three months ago. According to Reuters, the S&P Global Flash's composite PMI rose to 51.9 points from 50.0 in June, exceeding forecasts of 50.3.

The manufacturing sector saw its highest output level in 52 months, with a PMI reading of 52.0 points. Meanwhile, services also experienced growth, albeit at a slower pace than manufacturing.

Economists warn that the recovery may be short-lived due to ongoing inflationary pressures and escalating tensions in the Middle East, which could lead to increased energy prices.