Business activity in the eurozone remained in contraction territory in June, but it picked up pace compared to a month earlier, a key survey showed Tuesday, thanks to easing price pressures linked to the Middle East war.
The eurozone purchasing managers' index (PMI) published by S&P Global, an important gauge of the economy's overall health, registered a reading of 49.5 this month – a three-month high – after 48.5 in May.
A reading above 50 indicates growth, while a figure below 50 signals contraction.
"The eurozone economy is showing enough resilience to just about stay out of recession," S&P chief business economist Chris Williamson said in a note.
"The flash PMI registered only a slight drop in business activity in June, meaning the survey is indicative of unchanged GDP over the second quarter," he said.
After a preliminary peace deal between Iran and the United States, the tourism industry hopes for a rebound with more visitors expected to return later in the year to the Middle East and the nearby region, including the island of Cyprus and Türkiye.
"There is welcome news of an easing in the recent downturn in services activity, with tourism and leisure-related industries seeing signs of recovering demand after the initial disruptions from the war in the Middle East," he added.
That fledgling recovery was, however, accompanied by "sustained falls" in new business, the survey found.
Manufacturing activity continued to grow, recording a figure of 51.3 in June, below the 51.6 recorded last month.
The overall picture appeared better than in previous months after the war in the Middle East triggered a surge in energy costs worldwide.
