A run of S&P Global/HCOB business surveys shows that services activity across the euro area picked up in July, lifting the bloc’s composite PMI to 50.9 from 50.6 and marking the strongest reading in four months. The services gauge rose to 51.0, indicating a mild expansion even as overall demand remained subdued. Germany returned to growth for the first time since March, with its services PMI rising to 50.6 from 49.7 and the composite index matching that level. Italy’s services PMI climbed to 52.3 and its composite measure held at 51.5, while Spain led the region with a services reading of 55.1, helped by robust domestic demand. France was the lone large economy still contracting, according to survey data cited by local media. Outside the single currency area, the UK’s composite PMI eased to 51.5 but continued to signal modest private-sector expansion. Japan’s services sector grew at a quicker pace on upbeat demand, whereas the U.S. services industry effectively stalled in July as firms faced rising costs and cut headcount, the surveys show. Although the latest numbers suggest the euro-area economy began the third quarter on slightly firmer footing, the breadth of the recovery remains uneven. Stagnant new orders and declining business confidence flagged in the reports underscore lingering headwinds that may keep policymakers vigilant as they weigh the outlook for growth and inflation.