Economic activity in the eurozone’s private sector experienced its strongest growth since August 2024, according to the PMI Flash index published on Thursday by S&P Global.
An index figure below 50 indicates a decrease in activity, while a figure above 50 reflects growth. The index, based on company surveys, rose to 51 in July from 50.6 in June, marking the seventh consecutive monthly increase and the fastest rate in 11 months.
The services sector, rather than manufacturing, was the main driver of this summer’s growth, according to the study partners, Hamburg Commercial Bank (HCOB) and S&P Global. “For the first time in four months, the services sector recorded the strongest expansion, with its growth rate reaching its highest since January,” they noted.
“In contrast, industrial output saw a very slight slowdown compared to June, showing only marginal growth,” the communiqué added. However, “the manufacturing sector’s recession appears to be coming to an end.”
Cyrus de la Rubia, an economist at HCOB, pointed out that modest manufacturing growth is supported by Germany and most eurozone countries, “except for France, whose continued weakness affects overall performance. Nevertheless, the sustainable growth return in this sector relies on a recovery in French industry, a prospect currently challenged by a climate of political uncertainty in France,” the expert remarked.
He predicted that “Germany should see mild economic growth in July, while France is likely headed for a slight contraction.”
