In December, France's private sector experienced contraction for the fourth consecutive month, as reported by the latest flash survey from S&P Global. Both manufacturing and service sectors faced declines in output during this period.
According to the HCOB composite output index, December's figure rose slightly to 46.7 from November's 45.9. Yet, it remained below the 50 threshold, indicating continued contraction. While the rate of decline eased compared to November, the index still pointed to the second most significant downturn in the past eleven months.
The manufacturing sector faced the most significant challenge, enduring its steepest decline in over four and a half years. The services sector also reported a reduced decline in activity relative to November.
In terms of specific indices, the manufacturing Purchasing Managers' Index fell unexpectedly to 41.9 in December, down from 43.1 in November, contrary to forecasts of a slight increase to 43.2. Conversely, the services PMI rose to 48.2, surpassing expectations that it would stay steady at 46.9.
Hamburg Commercial Bank economist Tariq Kamal Chaudhry commented, "The industrial sector remains the Achilles' heel of the French economy, with even the relatively better-performing services sector unable to fuel growth." He further noted that political instability is likely to persist, with service companies highlighting political uncertainty as a challenge impacting business operations.
The material has been provided by InstaForex Company -
www.instaforex.com
