PARIS (Reuters) – Activity in the services sector in France fell for the eighth consecutive month and at its fastest pace since September, according to the preliminary services PMI survey compiled by S&P Global and published on Wednesday.
The index for the services sector reached 45.0 in January, compared to 46.0 expected by consensus. This is the worst result in four months.
The composite index, which compiles activity data from the services and manufacturing sectors, stood at 44.2, also its lowest level in four months.
“The French economy is off to a slow start in 2024. The preliminary PMIs show a generally depressed picture,” summarizes Norman Liebke, economist at Hamburg Commercial Bank.
Demand is eroding with economic uncertainty and the slowdown in activity, but there are still signs that give hope that the second largest economy in the euro zone can bounce back.
“Even though activity declined for the eighth consecutive month, new business and export indicators declined at a slower pace. Employment even increased, even if marginally,” notes Norman Liebke.
(Written by Tassilo Hummel, Corentin Chappron, edited by Blandine Hénault)
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