Key facts
- France's private sector contraction eased in July, with services output slowing marginally.
- The composite PMI rose to 49.6 in July, up from 47.2 in June.
- The manufacturing PMI declined to 50.0 in July from 51.2 in June.
- The services PMI rose to 49.8 in July from 46.8 in June.
- Business confidence reached a four-month high in July.
- Concerns remain regarding inflation, borrowing costs, and geopolitical tensions.
France's private sector contraction eased in July, with services output slowing only marginally, according to a business survey. The S&P Global flash France composite output index rose to 49.6 from 47.2 in June, indicating a less severe contraction. However, the manufacturing PMI declined to 50.0 from 51.2 in June, hovering at the threshold between growth and contraction. The services PMI saw an improvement, rising to 49.8 from 46.8 in June. French business confidence also reached a four-month high in July. Despite these improvements, ongoing concerns about inflation, rising borrowing costs, and geopolitical tensions, particularly in the Middle East, were cited as potential headwinds for continued momentum.