FX.co ★ Eurozone Private Economic Activity Rises to 11-Month High

The HCOB Eurozone Composite PMI experienced an increase to 51 in July 2025, improving from 50.6 in June. This marks the most substantial growth in private economic activity within the Eurozone in nearly a year, and it slightly surpasses market forecasts of 50.8. The expansion is primarily attributed to heightened activity among service providers, which rose to 51.2 from 50.5 in June, and an almost stabilized factory sector, which improved to 49.8 from 49.5, marking their least negative outlook in three years. For the first time in over a year, new orders at the aggregate level remained steady, ending a streak of thirteen consecutive months of decline. This stability has positively influenced output across both sectors, encouraging firms to bolster their staffing levels, breaking a five-month trend of stagnant employment. On the pricing front, input cost inflation reduced to its lowest point in five months, prompting companies to maintain consistent output charges after two preceding months of decreases. Looking ahead, business confidence has slightly diminished from the previous month, likely reflecting ongoing concerns about potential US tariff threats.