The Eurozone services sector returned to growth in July, with the final S&P Global Purchasing Managers’ Index (PMI) rising sharply to 51.7 from 49.4 in June.
The reading surpassed market expectations and marked the highest level of activity in five months, signaling a meaningful turnaround in the bloc’s largest economic segment.
The jump above the critical 50.0 threshold indicates that new business volumes are expanding rather than contracting.
This reversal comes after the sector had been in contraction territory for several months, with June’s reading of 49.4 already showing signs of stabilization.
The stronger-than-anticipated July print suggests that demand is recovering faster than previously modeled, providing a positive data point for policymakers monitoring the region’s economic health.
For traders, the improved services data reduces the immediate pressure on the European Central Bank to implement further emergency easing measures.