Business News Asia
S&P Global has revealed that the French manufacturing sector contracted in July and the expansion of the services sector slowed in the same month. This suggests that France, the eurozone’s second-largest economy, could be heading into a recession.
The French manufacturing purchasing managers’ index (PMI) fell to 49.6 in July, below 50 for the first time since November 2020, and the sub-index is expected to rise to 50.8.
An index below 50 indicates a decline in French economic activity.
The subindex for the key French services sector fell to 52.1 in July from 53.9 in June, marking the third consecutive month of decline.
The report also showed that activity in the new business sector of the private sector declined for the first time since February 2021, as inflation reached 6.5% in June, eroding consumer purchasing power.