Europe: Services Activity Rises to 51.7, Its Best Level in 5 Months
WHAT HAPPENED
The services activity of the eurozone grew again in July: its PMI index rose from 49.4 to 51.7, the best level in five months. The combined indicator of services and industry reached 52, up from 50 in June.
WHY IT MATTERS
More orders and hiring suggest that restaurants, hotels, transportation, banks, and consulting are recovering. Additionally, oil fell to around $79 per barrel, reducing energy and transportation costs and helping to curb price increases.
AND FOR YOUR PORTFOLIO
For wallets, the signal points to more employment and hours of work in services if the improvement continues. For long-term investments, it shows a European economy that could be coming out of stagnation, although inflation was still at 2.9% and may continue to pressure expenses.
💬 TELL IT LIKE THIS
“Europe has stopped contracting: services have started to grow again, with more orders, slightly more employment, and lower energy costs.”