Eurozone services PMI ticks higher in July

Business activity in the eurozone expanded a little faster than originally estimated in July, with Markit’s final composite purchasing managers’ index for the area – which combines the services and manufacturing sectors – rising to a six-month high.

The PMI ticked up to 53.2 from 53.1 in June and ahead of the flash estimate of 52.9, signalling growth for 37 successive months. A reading above 50 indicates expansion.

The upturn was led by surging growth in Germany, while France continued to stagnate.

The services PMI, meanwhile, nudged up to 52.9 in July from 52.8 in June and the flash estimate of 52.7. Still, the rate of expansion was among the weakest registered over the past year and a half.

Chris Williamson, chief economist at Markit, said: “A welcome uptick in the final PMI numbers presents a slightly better picture than the slowing signalled by the earlier flash reading, and is especially encouraging as it suggests the region saw little overall contagion from the UK’s ‘Brexit’ vote.

“However, the survey is still indicating only a modest 0.3% quarterly rate of economic growth at the start of the third quarter. Such a meagre pace of expansion will inevitably fuel speculation about what the ECB could and should do to boost growth, and when.”