Business activity in Europe grows again after 4 months of decline
WHAT HAPPENED
Business activity in the eurozone grew again in July: the PMI rose to 51.9 points from 50.0 in June, exceeding the expected 50.3 and reaching its best level in five months.
WHY IT MATTERS
After four months of declines, the rebound in services and new orders suggests that stagnation may be ending. It primarily benefits services, factories, suppliers, and stores, although high oil prices could hinder improvement.
AND FOR YOUR PORTFOLIO
For long-term investments, it is a sign of relief for companies selling in Europe and for their suppliers in Mexico, Brazil, and Asia. More activity can translate over time into more orders, employment, and consumption, but energy remains a risk.
💬 TELL IT LIKE THIS
“Europe has emerged from stagnation for now, but high oil prices could still dampen the recovery.”