French private sector output contracted further in March, PMI shows
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FILE PHOTO: People walk on the Promenade des Anglais in Nice, France March 15, 2020. REUTERS/Eric Gaillard/File Photo
By Sudip Kar-Gupta
PARIS (Reuters) - France's private sector activity contracted for a seventh consecutive month in March as business confidence in the euro zone's second-biggest economy fell to its lowest level since April 2020, according a survey published on Monday.
The HCOB flash purchasing managers index (PMI) for France's services sector, as compiled by S&P Global, stood at 46.6 points in March.
That was up from 45.3 points in February and beat a Reuters poll forecast for 46.3 points, but the reading remained below the 50 points level showing a contraction in activity.
Any figure below 50 points marks a contraction, while above 50 shows an expansion.
The March manufacturing flash PMI rose to 48.9 points, up from 45.8 points in February and ahead of a Reuters forecast for 46.5 points.
The March composite PMI - which comprises both the services and manufacturing sectors - rose to 47.0 points from 45.1 points in February but nevertheless marked a seventh consecutive month of showing a contraction in activity.
S&P Global added that French companies forecast lower activity levels over the next 12 months, with business sentiment at its weakest in almost five years.
"France's economy is struggling to gain momentum. Although the HCOB French Flash PMI improved in March compared to the previous month, it remains in contraction territory," said Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank.
"France passed a delayed budget law for 2025 in February which helped it avoid a downgrading of its credit rating, but there is still a high degree of uncertainty regarding future economic policy," he added.
(Reporting by Sudip Kar-Gupta; Editing by Toby Chopra)
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