Eurozone Business Activity Surges to 11-Month High in July: Key Insights for Investors and Entrepreneurs

• By Oman Market
• July 24, 2025July 25, 2025
• business activity economic growth eurozone
• With 0 comments

BRUSSELS — Business activity in the eurozone expanded for the seventh consecutive month in July, reaching an 11-month high, according to a closely watched survey released on Thursday.

The HCOB Flash Eurozone Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 51.0 in July, up from 50.6 in June. Readings above 50 indicate growth, while those below signal contraction.

Although growth remains modest, the pace accelerated for the second month in a row, marking the sharpest expansion since August of the previous year.

“The eurozone economy appears to be gradually regaining momentum,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. “The recession in the manufacturing sector is ending, and growth in the services sector picked up slightly in July.”

The rise in overall output was driven by growth in both manufacturing and services, with the services sector posting its strongest pace of expansion in four months.

Germany, a key contributor to the European economy, demonstrated encouraging signs of recovery, registering a slight increase in output for the second consecutive month. Conversely, business activity in France continued to decline, but at its slowest rate in nearly a year.

“Manufacturing output has cautiously expanded for five consecutive months. Germany has played a pivotal role, helping to offset weakness in France,” de la Rubia added. “However, for the eurozone’s manufacturing sector to achieve sustained growth, French industry must also regain stability.” — AFP

Special Analysis by Omanet | Navigate Oman’s Market

The eurozone’s steady recovery, marked by a seven-month growth streak and an 11-month high in business activity, signals renewed demand in manufacturing and services. For Omani businesses, this could open export opportunities and strengthen trade ties with European markets. Smart investors should monitor eurozone industrial shifts closely, positioning themselves to leverage emerging growth sectors while staying cautious of lingering regional disparities, such as France’s slower recovery.