Eurozone Services Activity Remains Strong in August

The S&P Global Eurozone Services PMI was unchanged at 51.7 in August 2026, slightly above market expectations of 51.5, according to flash estimates. The reading remained at its highest level since February, with rising tourism spending helping to support economic growth, particularly outside France and Germany, where the region recorded its fastest pace of services growth in more than three years. New export orders remained stable, while service providers also increased the pace of job creation during the month. Regarding prices, input costs rose at a slightly faster pace than in July, while the increase in output prices moderated, potentially marking the joint-lowest rate so far this year, alongside March. However, business confidence in the sector weakened, suggesting that firms were cautious about the year-ahead outlook.

The S&P Global Eurozone Services PMI rose to 51.7 in July of 2026 from 49.4 in June, the highest in five months, revised marginally higher from the flash estimate of 51.6 and well above the initial estimate consensus of 49.8. The result reflected improving economic conditions as the momentary truce between the US and Iran lowered energy prices and improved margins for the European services sector. New business wins rebounded in the period, even though most new contracts were with domestic clients, while backlogs were depleted. Consequently, higher capacity demand supported a mild increase in employment levels. Meanwhile, input cost inflation fell the most since February, leading to a similar slowdown in output charges. Looking ahead, Eurozone services providers displayed greater optimism on the year ahead.

The S&P Global Eurozone Services PMI rose to 51.6 in July 2026 from 49.4 in June, marking a five-month high and comfortably exceeding market expectations of 49.8, flash data showed. The reading signaled a return to expansion in the services sector after a three-month contraction, supported by a renewed increase in business activity. Employment also improved, with service providers driving overall job creation across the private sector. On the cost front, operating expenses continued to rise at a pace broadly unchanged from the previous month, reflecting persistent input cost pressures. However, output price inflation eased, indicating that firms were passing on costs to customers at a slower rate. Business confidence also strengthened, with sentiment regarding the year-ahead outlook improving across the services sector as companies grew more optimistic about future demand and economic conditions.