Private-sector activity in the 20-nation euro area accelerated in July, with the flash composite Purchasing Managers’ Index compiled by S&P Global and Hamburg Commercial Bank rising to 51.0 from 50.6 in June. The reading, the highest since August 2024, puts the gauge further above the 50 line that separates expansion from contraction and suggests economic momentum is firming after a soft patch earlier in the year. Growth was led by services, where the PMI advanced to 51.2, while manufacturing climbed to 49.8—still marginally in contraction territory but the strongest showing in three years. New business volumes stabilised for the first time in more than a year, and inflationary pressures eased as input-cost growth in services slowed to a nine-month low. The figures arrive hours before the European Central Bank sets borrowing costs. Economists widely expect the Governing Council to leave rates unchanged while keeping the door open to a further quarter-point cut, most likely in September, as policymakers weigh signs of improving demand against lingering global trade risks.