Eurozone Business Activity Rebounds in July, but Inflation Risks Persist

The Eurozone business activity has returned to growth in July for the first time in four months. The S&P Global Flash Eurozone Composite PMI Output Index rose to 51.9 in July, its highest reading in five months.

This is a significant improvement from June's 50.0 and far above an expectation of a modest rise to 50.3. A reading above 50.0 signals an expansion in activity.

The rebound was driven by a growth in new orders, which saw the fastest pace since April 2023. However, export orders continued to decline at a slower rate than before.