Business activity in the 19-nation eurozone is increasing for the first time since February, before the coronavirus lockdown, according to a survey of purchasing managers by IHS Markit.

The firm's PMI output index turned positive -- hitting 54.8 points in July compares to 48.5 in June -- and showed the sharpest rate of growth in July for just over two years.

The index fell to its lowest ever level in April, plunging to 13.6 points -- anything under 50 indicates a contraction. It improved to 31.9 in April and 48.5 in June.

IHS Markit ascribed the turnaround to lockdowns across the continent easing -- allowing firms to get back to work and consumers to return to shops, easing the pace of job losses.

But Williamson warned that, despite an "initial V-shaped recovery", many businesses are merely completing backlogs of work and there may be more trouble ahead.

"The concern is that the recovery could falter after this initial revival," he said.

"Firms continue to reduce headcounts to a worrying degree, with many worried that underlying demand is insufficient to sustain the recent improvement in output."

Europe was hard hit by the coronavirus epidemic. Public health orders got the outbreak under control, but there have been worrying upticks in cases in some regions since governments began to lift lockdown rules. AFP