PARIS (Reuters) – French business activity fell faster than expected in December, a survey showed on Friday, as demand for goods and services in the euro zone’s second-largest economy deteriorated further.
The preliminary Services PMI, compiled by S&P Global, stood at 44.3 points in December, its lowest level in 37 months.
It has now been seven consecutive months that the index has been below the 50 mark, which separates growth and contraction in activity.
The flash services PMI for December was expected at 46.0 according to the Reuters consensus. The final figure for November reached 45.4.
The preliminary manufacturing PMI for December fell to 42.0 points, a 43-month low, and from 42.9 in November, compared to a consensus of 43.3 points.
The preliminary composite PMI for December, which includes the services sector and the manufacturing sector, fell to 43.7 points, from 44.6 in November, and against a consensus of 45.0 points.
“The French economy is sinking into recession, with preliminary PMIs in December painting a disconcerting picture of the EU’s second-largest economy. The contraction in the services and industrial sectors worsened in December,” notes Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank.
“French industry, in particular, is worried about its future prospects. Domestic and international orders are in free fall, which suggests difficulties for employment,” he added.
(Written by Benoit Van Overstraeten, Corentin Chappron, edited by Jean-Stéphane Brosse)
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