Eurozone PMI Services was finalized at 54.7 in July, up from June’s 48.3. PMI Composite was finalized at 54.9, up from June’s 48.5. That’s also the highest level since June 2018.
Looking at some member states, France PMI Composite hit 29-month high of 57.3. Germany hit 23-month high of 55.3. Spain hit 15-month high at 52.8. Italy hit 24-month high of 52.5.
Chris Williamson, Chief Business Economist at IHS Markit said: “Combined with a surge in manufacturing production, the renewed expansion of the service sector bodes well for the economy to rebound in the third quarter after the unprecedented slump seen in the second quarter. Whether the recovery can be sustained will be determined first and foremost by virus case numbers, and the recent signs of a resurgence pose a particular risk to many parts of the service sector, such as travel, tourism and hospitality.
“However, even without a significant increase in infections, social distancing measures will need to be in place until an effective treatment or vaccine is available, dampening the ability of many firms to operate at anything like pre-pandemic capacity, and representing a major constraint on longer-run economic recovery prospects.”
