Eurozone business activity saw a slight uptick in July – PMI

Economic data released on Tuesday indicated that business activity in the Eurozone picked up slightly in July compared to June, though overall momentum remained subdued due to persistently weak demand.

The Eurozone Composite Purchasing Managers’ Index (PMI) inched up to 50.9 in July from 50.6 the previous month, slightly below both the consensus and June’s 51.0 reading.

The Services PMI rose to 51.0 in July from 50.5, also falling short of expectations for 51.2. Both indicators stayed above the 50.0 mark, signaling modest expansion.

Despite edging closer to a four-month high, July’s readings remain below the long-term survey average of 52.4, reflecting ongoing softness across the euro area’s private sector.

Economists remain cautiously optimistic, anticipating further improvement in services activity this summer, particularly in Spain and Italy, where July saw stronger gains. Germany also showed signs of gradual recovery after a prolonged period of weakness.

Spain maintained its lead with the strongest pace of expansion, followed by Italy, while Germany—the region’s largest economy—posted only marginal growth.

France was the only major Eurozone economy to contract in July, with its PMI slipping again and marking the 11th consecutive month of decline.

On a more positive note, Eurozone businesses continued to expand their workforce for a fifth month in a row. While overall job creation remained modest, July recorded the fastest pace of hiring in over a year, offering a potential sign of resilience in the labor market.