Initial jobless claims rose marginally to 199,000 in the week ending August 1, remaining below expectations, while continuing claims increased slightly to 1.8 million. Strong output growth masks weak demand in eurozoneEurozone manufacturing activity continued to strengthen in July, with factory output expanding its fastest pace in nearly four- and-a-half years. The S&P Global Eurozone Manufacturing PMI Index (PMI) rose to 51.9 in July from June’s 51.4, remaining in expansion territory and reaching its highest level since April. New orders only rose marginally during the month and lagged behind the pace of output growth. The improvement was largely driven by a recovery in new business, with S&P Global’s measure of total new work in the services sector increasing to 50.8 from 47.6 in June.