Final July eurozone PMIs: services 51.7, composite 52.0, both slightly above
expectations and prelims; composite remains above 50, indicating the eurozone’s
Q3 start has not sharply decelerated. The preliminary composite rose from June’s
50.0 to 51.9 and the final is 52.0, reinforcing mild re-acceleration. France
services remain below 50, leaving France near contraction; the expansion is
uneven, with Germany, manufacturing and pockets of services offsetting French
weakness. July manufacturing PMI rose to 51.9 and the manufacturing output index
to 52.9—the highest since March 2022—suggesting industrial activity is
supporting the improvement. Market takeaway: data could reduce urgency for an
immediate ECB dovish pivot.
