EU S&P Global Services PMI Final (Jul) 51.7 vs. Exp. 51.6 (Prev. 49.4)

"A rise in the headline output index means the survey is signalling quarterly GDP growth of 0.3%, importantly reflecting an increasingly broad-based upturn. July saw the first significant increase in service sector activity since the outbreak of the war, adding to the sunnier summer picture from manufacturing, which has reported the largest increase in production for over four years" "However, these improvements came on the tailwind of June’s lower oil prices and easing tensions in the Middle East. With the conflict having since flared up again, we are seeing renewed downside risks to growth and upside risks to already-elevated inflation. The latter puts policymakers in more hawkish decision-making stance, though the marked drop in the PMI price gauges potentially provides a window for further rate hikes to be delayed until the outlook for inflation becomes clearer."