Eurozone’s manufacturing sector experienced growth in July, with factory output reaching its fastest rate in nearly four and a half years. The final data was slightly below the initial forecast of 52.0. While production picked up at the beginning of the third quarter, demand signals revealed that the recovery was still uneven across the currency bloc. Factory production reached a 52-month high as eurozone demand remained subdued. Manufacturing firms accelerated production even as new orders grew only marginally. Companies depended heavily on existing work to sustain current output, resulting in production growth outpacing new demand from both domestic and international markets.

The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal procedures on August 4. Operating under the European Innovation Council Fund, the initiative targets key technology firms with strategic importance. EQT has been appointed as the investment manager and will select deals based on commercial considerations. The Commission anticipates making its initial investments within a few weeks. Fundraising efforts are ongoing as EQT seeks further commitments from both public and private sector investors.

In June 2026, the inflation rate across economies monitored by the OECD slowed down to 4.2%, marking a decrease from 4.6% in May. This slowdown brought an end to three months of consecutive increases in headline inflation figures. Among the 36 member countries, 20 experienced a deceleration in consumer price increases, while six saw an uptick. The remaining 12 nations maintained stable or broadly stable inflation levels. Notably, nine OECD countries registered inflation rates of 2% or less, including three with rates below 1%.

The UK economy remains outside recession, but softer investment and hiring have increased scrutiny of its growth outlook. EY expects gross domestic product to expand 0.9% in 2026 after raising its May projection by 0.1 percentage point. The firm forecasts 1.2% growth for 2027. Its central outlook assumes the Strait of Hormuz reopens by September, while shipping volumes remain below normal. Energy costs now sit at the center of the UK economic debate.