Latest news with #HCOBFlashFrancePMI
Yahoo
22-05-2025
- Business
- Yahoo
France's private sector contracts for ninth month in May, PMI shows
By Sudip Kar-Gupta PARIS (Reuters) -France's private sector continued to contract in May, marking the ninth consecutive month of decline, as weakness in the services sector weighed on the euro zone's second-biggest economy, according to S&P Global's HCOB Flash France PMI survey. The flash PMI for France's dominant services sector stood at 47.4 points in May from 47.3 in April, marking the ninth month in a row in which it has been below the 50 points level signalling a contraction in activity. Any figure below 50 points shows a contraction while above 50 shows an expansion. A Reuters poll had forecast 47.5 points for the May flash services figure. The flash PMI for the manufacturing sector in May rose to 49.5 points, up from 48.7 in April and ahead of a Reuters poll which had forecast 48.9 points. The flash composite PMI - which comprises both the manufacturing and services sectors - for May stood at 48.0 points, exactly in line with a Reuters poll forecast and up from 47.8 in April. However, that composite PMI figure also marked the ninth consecutive month in which it had been below the 50 points level and therefore in contraction territory. "France's private sector remained subdued in May. The Flash Composite PMI continues to signal contraction, reflecting the economic challenges France is facing amid domestic political instability and a fragile macroeconomic environment," said Hamburg Commercial Bank junior economist Jonas Feldhusen. "Despite improvements in manufacturing and President Macron's recent efforts to position France as an attractive destination for investment, research and development, the overall outlook for the private sector remains bleak, as seen by the business outlook falling sharply in May, especially in the service sector," he added.
Reuters
23-04-2025
- Business
- Reuters
French private sector contracts at faster pace in April, PMI shows
PARIS, April 23 (Reuters) - France's private sector activity has contracted at a sharper rate in April, driven by a steep decline in services, according to the HCOB Flash France PMI survey compiled by S&P Global. The flash services PMI dropped to 46.8 points from 47.9, its lowest in two months, as new business intakes fell at the steepest rate since November 2020. This compared with a Reuters poll forecast for 47.7 points. The manufacturing sector showed some signs of resilience, with its output index rising to 50.3 from 48.6, reaching a 35-month high. But the overall manufacturing PMI came in at 48.2, down from March's 48.5. The composite PMI, combining services and manufacturing, fell to 47.3 points in April from 48.0 points in March, marking the eighth consecutive month of contraction. Readings below 50 indicate declines in activity. Despite the uptick in manufacturing production, the overall outlook remains bleak. Firms expressed pessimism about future output, with business expectations hitting a near five-year low. "Despite a slight decline from the previous month, the data are not as dire as we anticipated," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank. "The order situation has significantly deteriorated, and future business expectations have slipped below the growth threshold." The survey highlighted pronounced demand weakness within domestic markets, although export sales saw their shallowest drop since August 2022. Falling workloads led to backlog completion, with manufacturing backlogs holding steady for the first time in more than two years. Price pressures eased, with input costs rising at the slowest pace in 2025, and prices charged were discounted for the first time in three months. The final April PMI data will be published in early May.
