France: Services PMI rises in June but remains downbeat
The HCOB France Services Purchasing Managers’ Index (PMI) rose to 49.6 in June from 49.3 in May. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer worsening in services-sector business activity compared to the previous month.
June saw the sharpest fall in new orders since January, particularly from non-domestic markets. Despite this downturn in new business, employment in the French service sector continued to grow, as companies recruited both permanent and temporary staff in anticipation of future growth.
There was a further easing of inflationary pressures, with output price inflation slowing to the weakest in over three years. Finally, business confidence hit a five-month low, largely due to uncertainty surrounding the outcome of July’s general election.