(Bloomberg) -- The risk of the euro zone’s recession extending is lower than some pessimistic surveys suggest, with other data pointing to a more resilient economy, according to Bank of America.

While the latest Purchasing Managers’ Index has stoked fears of the bloc’s winter downturn continuing, it “would in theory imply a near-catastrophe in industrial output,” economists Alessandro Infelise Zhou and Ruben Segura-Cayuela said Friday in a report to clients. “But that’s not really what the hard data has been showing lately.”  

The bank’s own sentiment tracker, as well as surveys by the European Commission, show “timid signs of recovery,” they said, citing growing optimistic among European households, resilient services activity and robust tourism. They estimate gross domestic product edged up 0.1% in the second quarter.

The region’s laggard, according to BofA, is Germany, which is struggling to exit its own recession. Industrial production unexpectedly dropped there in May, and low water levels in the strategically important Rhine river add to concerns over Europe’s largest economy. BofA expects the country’s industrial sector to be slightly negative in the second quarter.

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