Preliminary S&P Global euro area composite PMI rose to 51.9 in July from 50.0 in
June, the highest in five months and well above economists’ 50.3 forecast,
signaling a return to expansion after four months. New orders expanded for the
first time since February, with the pace of growth the strongest since April
2023. Export orders, including intra-euro-area trade, remain in contraction but
the decline was the smallest since March 2022. Services PMI climbed to 51.6 from
49.4, ending a three-month contraction and marking a five-month high;
manufacturing PMI increased to 52.0 from 51.4, with manufacturing output at its
highest growth rate in 52 months and above the 51.5 market expectation. S&P
Global chief business economist Chris Williamson said the pickup is welcome but
that sustained momentum may be constrained by ongoing geopolitical uncertainty.
