The index measuring services confidence in the Euro Area rebounded to 2.2 from the upwardly revised, five-year low of 1.4 in the previous month, ahead of the market consensus that it would fall further to 0.2. Still, it was the second lowest reading in the five-year period, underscoring the impact of high energy prices faced by firms due to the halt of oil and gas supply from the Middle East. The current assessment of business situations eased its pessimism (-0.9 vs -2.4 in April), and the expected drop in employment also eased (-1.8 vs -4.9). Still, the evolution of demand worsened (2.6 vs 3.2). Signs energy prices may have already peaked supported the evolution of demand expected in the upcoming three months (4.9 vs 3.4), consistent with a drop in selling price expectations (16.2 vs 17.3).