The eurozone economy returned to growth in July, marking the first expansion in four months according to preliminary Purchasing Managers’ Index (PMI) data.
The reading signals a potential stabilization in the region’s private sector activity after a prolonged period of contraction.
The most significant positive surprise came from the services sector, particularly in countries outside Germany and France.
These peripheral economies showed stronger momentum than anticipated, offsetting continued weakness in the core manufacturing hubs.
This divergence suggests that the drag on the broader eurozone economy is becoming more localized rather than systemic.
The shift in momentum follows a June where the services PMI rose to 48.9, surpassing market consensus and indicating a slower-than-feared deterioration.