The Eurozone PMI increased from 50.6 to 51 in July, indicating slight economic growth despite uncertainty. The manufacturing sector is still influenced by US frontloading of European goods, making it hard to assess the true state of the economy. However, July’s data shows expansion, especially in the service sector, which is crucial for third-quarter growth prospects. While manufacturing output has seen modest gains, weakening sentiment in July raises concerns about sustaining recovery amidst trade uncertainty. Overall, the PMI data reflects softness in both goods and services, hinting at benign growth amid external risks. The European Central Bank is unlikely to change its decision based on this data, with potential rate cuts more likely in September.

Read more at Investing.com: Eurozone PMI Says the Economy Is Doing ’Fine’