France Services Sector Contracts More Than Expected in June 2024
June 2024 Services PMI and Economic Outlook
Survey Results and Key Figures
PARIS, July 3 (Reuters) - France's services sector contracted in June by more than initially forecast, as sluggish demand and inflationary pressures weighed on businesses, said a survey by S&P Global.
Services PMI Performance
The S&P Global France Services PMI Business Activity Index rose to 46.8 points in June from 44.3 in May, although that final June services figure came below a flash figure of 47.4.
PMI Interpretation
Any figure below 50 points shows a contraction in activity, while above 50 shows expansion.
Composite PMI and Sector Comparison
The S&P Global France Composite PMI Output Index, which includes both the services and manufacturing sectors, rose to 47.2 from 44.9 in May - also below a flash June composite PMI figure of 47.6 and below that 50 points threshold.
Expert Commentary and Economic Implications
"All things considered, the June PMI survey for France could have been much worse, especially after the recessionary warning signs being flagged in the May numbers and by the downward revision to first quarter GDP," said Joe Hayes, senior principal economist at S&P Global Market Intelligence.
Ongoing Economic Challenges
"What hasn't changed, however, is the fact that the French economy is still mired by sluggish demand, weak business confidence and strong inflationary pressures," he added.
Reporting Credits
(Reporting by Sudip Kar-Gupta; Editing by Toby Chopra)
