French economic activity contracted at fastest pace in 14 months, survey shows

PARIS, April 23 (Reuters) - Business ‌activity in ​France's ​private sector contracted at its fastest pace in 14 months as a downturn in the services ‌sector amid the Iran war outweighed stronger factory output ⁠growth, a preliminary survey from S&P Global showed on Thursday.

The S&P Global ‌Flash France Purchasing Managers' ‌Index for the services sector in April fell to 46.5 points from 48.8 in March, coming in below a ​Reuters poll forecast of 48.5 points. That level of 46.5 points was its lowest since February 2025.

Any figure ⁠below 50 shows a contraction in activity, while a reading above 50 points to ​expansion.

The flash manufacturing April PMI, on the other hand, rose to 52.8 points from 50.0 in ​March, and beat a Reuters forecast ‌of 49.5 points.

Factory order books expanded for the first time in almost four years as ⁠clients brought forward purchases ahead of expected shortages and price increases.

However, the composite April flash PMI, which includes both the services ⁠and manufacturing sectors, fell to 47.6 points from 48.8 in March. That ​was below a Reuters forecast for 48.6 points.

S&P Global said inflationary pressures resulting from the U.S.-Israeli war with Iran were affecting businesses.

"Unsurprisingly, manufacturing ‌inflation moved even higher in April as a range of raw material costs rose, transportation ‌became more expensive and supply bottlenecks pushed up prices," said ⁠Joe Hayes, principal economist at ‌S&P Global Market ​Intelligence.

"Services companies are also feeling the pressure from higher transportation costs."

(Reporting by Sudip Kar-Gupta; Editing by Joe ‌Bavier)

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