Eurozone economy withstands impact of Middle East conflict! June PMI rebounds higher than expected, recession warning temporarily lifted.

Financial Express has learned that, despite the rising inflation and dampened confidence brought by the Middle East war putting pressure on the economy, the Eurozone's commercial activity contraction in June was smaller than expected. This has bolstered market optimism that the region's economy can withstand the impact. Data released by S&P Global on Tuesday showed that, although the Composite Purchasing Managers' Index (PMI) has been below the 50 expansion-contraction line for the third consecutive month, the index rose from 48.5 in May to 49.5 in June, better than the analysts' previous forecast of 49.2. Specifically, the Eurozone's manufacturing PMI decreased slightly to 51.3 in June, down from 51.6 in May; while the services PMI rose from 47.7 in May to 48.9.