Business confidence in the euro area still seems to be defying economic headwinds, economists at Commerzbank report.

Euro area PMIs continue to send conflicting signals

“The Purchasing Managers' Index for the services sector, the most reliable economic barometer for the euro area, fell only slightly by 0.3 points in May to a still high 55.9. The manufacturing PMI, on the other hand, slipped even deeper into recessionary territory at 44.6.”

“In contrast to the majority of economists, we continue to expect a slight decline in real GDP in the second half of the year.”