{"id":435492,"date":"2026-08-05T15:40:06","date_gmt":"2026-08-05T08:40:06","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/euro-area-services-sector-drives-business-activity-rebound-in-july-pmi-data-435492\/"},"modified":"2026-08-05T15:40:06","modified_gmt":"2026-08-05T08:40:06","slug":"euro-area-services-sector-drives-business-activity-rebound-in-july-pmi-data","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/euro-area-services-sector-drives-business-activity-rebound-in-july-pmi-data-435492\/","title":{"rendered":"Euro area services sector drives business activity rebound in July &#8211; PMI data"},"content":{"rendered":"<div>\n<ul>\n<li>July final services PMI 51.7 vs 51.6 prelim<\/li>\n<li>Prior 49.4<\/li>\n<li>July final composite PMI 52.0 vs 51.9 prelim<\/li>\n<li>Prior 50.0<\/li>\n<\/ul>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The final estimate here reaffirms a solid rebound in euro area business activity to start the third quarter. That as the services print is a 5-month high with the composite print being a 8-month high.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Of note, output and\u00a0new orders rose at strongest rates since<br \/>\nlast November as inflation cools. The July expansion was broad-based amid further growth in the services sector as well as a more sustained uplift in the manufacturing side.\u00a0Germany<br \/>\nposted its first rise in private sector output since March,<br \/>\nwhile both Italy and Spain saw stronger rates of growth.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Looking to price pressures, the\u00a0rates of both input cost and output<br \/>\ncharge inflation dropped in July. And adding to that, prices set for euro area goods and services were<br \/>\nlifted by the smallest margin since March. All that being said,\u00a0the pace of both input and output price<br \/>\ninflation were elevated relative to the survey average historically (chart below).<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">S&amp;P Global notes that:<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">&#8220;July\u2019s final PMI adds to a picture of encouraging resilience of<br \/>\nthe eurozone economy amid the ongoing conflict in the Middle<br \/>\nEast, but also underscores how the business climate is being<br \/>\nsteered by the changing geopolitical landscape.\n<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">&#8220;A rise in the headline output index means the survey<br \/>\nis signalling quarterly GDP growth of 0.3%, importantly<br \/>\nreflecting an increasingly broad-based upturn. July saw the<br \/>\nfirst significant increase in service sector activity since the<br \/>\noutbreak of the war, adding to the sunnier summer picture<br \/>\nfrom manufacturing, which has reported the largest increase<br \/>\nin production for over four years.\n<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">&#8220;Business optimism also brightened in July, lifting to the<br \/>\nhighest since January. Sentiment has been buoyed by a<br \/>\ncombination of improving demand conditions, with new orders<br \/>\nrising in July at the fastest rate since November, alongside the<br \/>\nslowest growth of firms\u2019 costs since February.\n<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">&#8220;However, these improvements came on the tailwind of<br \/>\nJune\u2019s lower oil prices and easing tensions in the Middle<br \/>\nEast. With the conflict having since flared up again, we are<br \/>\nseeing renewed downside risks to growth and upside risks<br \/>\nto already-elevated inflation. The latter puts policymakers in<br \/>\nmore hawkish decision-making stance, though the marked<br \/>\ndrop in the PMI price gauges potentially provides a window for<br \/>\nfurther rate hikes to be delayed until the outlook for inflation<br \/>\nbecomes clearer.&#8221;<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>July final services PMI 51.7 vs 51.6 prelim Prior 49.4 July final composite PMI 52.0 vs 51.9 prelim Prior 50.0 The final estimate here reaffirms a solid rebound in euro area business&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-435492","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/435492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=435492"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/435492\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=435492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=435492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=435492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}