Eurozone composite PMI hits 11-month high, but French activity lags
By Benjamin Chiou
Date: Thursday 24 Jul 2025
(Sharecast News) - Private sector activity growth across the eurozone rose to an 11-month high in July as new orders stabilised, though the overall reading masked a mixed outcome for the region's two largest economies.
The flash reading of the July composite purchasing managers' index (PMI) edged higher to 51.0 this month, up from 50.6 in June and marginally ahead of the consensus forecast of 50.8.
This was the highest rate of growth - signalled by any reading above the neutral 50-point mark - since August.
The eurozone services PMI increased to a six-month high of 51.2 from 50.5, offsetting a continued fall (albeit at a reduced rate) in the manufacturing sector. While still below 50, the manufacturing PMI rose to 49.8 from 49.5, hitting a 36-month high.
July data indicated a stabilisation of new orders, ending a 13-month string of contractions. New business in the services sector rose for the first time in six months, though manufacturing saw a renewed fall.
Employment across the region also increased "modestly", though business confidence dipped slightly.
The German composite PMI, while still showing growth, fell to 50.3 from 50.4, missing the 50.7 consensus estimate, as a return to growth in the services sector was offset by an ongoing downturn in manufacturing.
Meanwhile, the French composite PMI rose to 49.6 from 49.2, ahead of the 49.3 forecast but below the 50-point mark for the 11th straight month, with both the services and manufacturing PMIs still showing contractions.
"The eurozone economy appears to be gradually regaining momentum. The recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"However, for the manufacturing sector in the eurozone to return to solid growth in the long term, French industry must also regain its footing. The current political uncertainty in Paris is certainly an obstacle to this."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN