Euro-zone private-sector activity increases more than expected in July, with the improvement returning activity to levels seen before the escalation in the conflict with Iran. Multiple outlets report that the euro-area composite purchasing managers’ index (PMI), compiled by S&P Global, rises to 51.9 and moves back above the 50-point threshold that separates growth from contraction. The July reading marks a rebound from the prior downturn associated with the earlier escalation, and it reaches the highest point in about five months, according to the reports.
At the same time, the articles note that the most recent flare-up in the conflict creates uncertainty and may weaken business sentiment going forward. While the near-term data point to stronger private-sector momentum, both summaries emphasize that renewed geopolitical tensions could affect expectations and risk offsetting the gains reflected in the July PMI survey results.
