PARIS (Reuters) – Activity in France’s services sector remained weak in November as demand fell at its fastest pace in three years, according to a survey published on Tuesday which fueled fears of a recession in the second largest economy in the eurozone.
The S&P Global/HCOB services sector PMI came in at 45.4 points in November, almost in line with an initial estimate of 45.3 points and still well below the 50 level that separates growth. and contraction of activity. In October, the index stood at 45.2 points.
A subindex measuring new orders fell to 43.2 points, its lowest level since November 2020.
“French service companies are in a difficult situation. Activity has fallen for the sixth consecutive month, demand remains weak and input prices have again increased at a rapid pace,” summarizes Norman Liebke, economist at Hamburg. Commercial Bank.
Business leaders are particularly concerned about continued weak demand and tighter financing conditions in 2024, he adds.
The final November composite PMI figure, which combines the services and manufacturing sectors, came in at 44.6 points, compared to an initial estimate of 44.5 points.
Last week, INSEE reported that France’s GDP contracted by 0.1% in the third quarter, but Finance Minister Bruno Le Maire reiterated that he still believed growth would be “positive.” for all of 2023.
(Report by Tassilo Hummel, by Corentin Chappron, edited by Blandine Hénault)
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