An index above 50 indicates increased activity. The average forecast among analysts was for a July index of 49.7.
“The German economy has started the third quarter positively,” said S&P Global economist Phil Smith in a press release.
But he warns of setbacks after developments in the Middle East in recent weeks, which are pushing up energy prices.
A turn in the right direction is also visible in S&P Global's French Purchasing Managers' Index, which rose to 49.6, compared with 47.2 in June.
