Eurozone PMI Bounces Back to 52 in July

The eurozone's private sector showed signs of recovery in July as the Composite Purchasing Managers' Index (PMI) rose to 52, up from June's 50. The rebound was largely driven by a strengthening services sector, with its PMI returning to expansion at 51.7 after three months below 50.

The sector saw firmer demand and rising sales, while factories remained soft. At the country level, Germany expanded for the first time since March, France's downturn eased, and Italy and Spain grew more firmly.

S&P Global's Chris Williamson noted that the headline reading is consistent with about 0.3% quarterly economic growth. However, he also flagged a clear drop in PMI price gauges, which suggests inflation pressure in the pipeline is easing.