Business activity in Europe has reached its broadest level of growth since February, the latest S&P Global Europe Sector PMI has found, with firms in the Technology Equipment segment recording the strongest growth.
As the July data showed, 13 of the 19 sectors monitored reported higher output in July, up from 12 sectors in June, with Technology Equipment reclaiming the top spot in the growth rankings for the second time in the past three months.
Technology performance
‘Technology Equipment topped the growth rankings during July, and for the second time in the last three months,’ the report noted. ‘The rate of increase in production was the steepest since November 2021 and was closely followed by the expansion seen at Software & Services firms. The broad Technology category has been the top performer for the last six months.’
By contrast, the Chemicals sector recorded the first contraction for six months, pushing the sector to the bottom of the rankings table for the first time since last November, and was the only sector where cost inflation remained below its long-run average.
Elsewhere, Household & Personal Use Products experienced the steepest decline in new orders.
Increased demand
Demand also improved across much of the economy, with a greater number of sectors reporting higher new order inflows than in June. Inflationary pressures also eased across much of the private sector, with 14 of the 19 sectors recording slower increases in input costs during July, although operating expenses continued to rise across every industry monitored.
Selling prices increased in most sectors, but companies in Other Financials and Construction Materials cut output prices during the month.
Finally, employment trends remained largely subdued, the data showed. Most sectors continued to reduce headcount, extending a pattern that has persisted since October 2024. Other Financials recorded the strongest pace of job creation, while Media experienced the sharpest decline in employment. Read more here.
