The S&P Global Eurozone Services PMI rose to 51.7 in July 2026 from 49.4 in June, marking a five-month high. The reading was revised slightly upward from the flash estimate of 51.6 and came in well above the consensus forecast of 49.8. This improvement reflected better economic conditions, as a temporary truce between the US and Iran eased energy prices and boosted profit margins across the European services sector.
New business volumes rebounded during the month, although most of the additional contracts came from domestic clients, and backlogs of work continued to be run down. In turn, the increase in capacity utilization supported a modest rise in employment.
At the same time, input cost inflation recorded its sharpest decline since February, feeding through into a comparable slowdown in output price growth. Looking ahead, service providers in the Eurozone expressed greater optimism about activity over the coming year.
