Eurozone business activity returns to growth in July, S&P Global data shows

Business activity in the eurozone grew in July for the first time in four months, according to purchasing managers' index data published by S&P Global.

The eurozone PMI rose to 51.9 in July from 50 in June. A reading above 50 indicates growth, while a reading below 50 indicates contraction.

S&P chief business economist Chris Williamson said the July figures showed a revival in eurozone activity, but he warned that the outlook remained uncertain because of the conflict in the Middle East. The report said escalation in the region has raised concern about the global economy as oil prices rise again.

Williamson said Germany reported growth for the first time in four months, France's downturn weakened to its softest level since February, and the rest of the region grew at its fastest pace since last November.

He said whether the improvement continues depends largely on developments in the Middle East. He warned that rising oil prices and increased shipping concerns could intensify inflation pressures and cause supply disruptions, especially for energy, which could derail the early upturn.