FX.co ★ Eurozone Private Sector Activity Returns to Growth

The S&P Global Eurozone Composite PMI climbed to 51.9 in July 2026 from 50.0 in June, clearly surpassing market expectations of 50.3, according to a preliminary estimate. This marked the first expansion in business activity in four months, driven by a renewed upturn in services and the fastest growth in manufacturing output since March 2022. Germany returned to growth for the first time in four months, while France’s downturn eased to a slight contraction. Across the rest of the eurozone, activity recorded its strongest expansion in eight months. New orders rose at their fastest pace since April 2023, and export orders saw their smallest decline since March 2022. Employment increased for the first time this year, and easing supply-chain pressures enabled manufacturers to rebuild input inventories for the first time in three-and-a-half years. At the same time, both input cost and output price inflation moderated. Business confidence strengthened to a five-month high, though it remained below pre-conflict levels.