Friday, July 24, 2020

Euro zone business activity bounces back in July with strongest growth in 2 years

Andrey Rudakov | Bloomberg | Getty Images

The euro zone’s business activity rebounded in July, according to preliminary data, as strict coronavirus lockdowns were further eased and more people returned to work.

In June, the region had already shown signs of a recovery with flash PMIs (Purchasing Managers’ Index) hitting 47.5 — up from 31.9 in May. A reading below 50 indicates an economic contraction. However, the July number surpassed this threshold coming in at 54.8, indicating that economic activity grew for the first time since February. 

“Companies across the euro area reported an encouraging start to the third quarter, with output growing at the fastest rate for just over two years in July as lockdowns continued to ease and economies reopened. Demand also showed signs of reviving, helping curb the pace of job losses,” Chris Williamson, chief business economist at IHS Markit which provides the data, said in a statement.

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