British businesses boomed and activity at euro zone companies expanded, albeit modestly, in July for the first time in 18 months, while growth in the US services sector rebounded from a three-year low.

The data suggested economic recovery in the UK and US economies was gathering steam, raising questions about the proper amount of monetary stimulus needed in those countries.

For the US Federal Reserve, the rebound in the Institute for Supply Management’s services index last month bolsters the central bank’s case that the economy will strengthen in the second half of the year.

A surge in new orders helped the index hit 56 last month after slipping to 52.2 in June, a three-year low.

Whether that leads the Fed to begin slowing its $85 billion in monthly bond purchases next month is still an open question. While recent economic data has been mostly strong, the Fed unnerved some investors last week when it flagged low inflation and rising mortgage rates as potential growth risks.