July flash composite PMI reached 49.6, a marginal contraction, driven by a 7-month high in services activity.
France’s flash composite PMI climbed to 49.6 in July, up from 47.2 in June, as a rebound in the services sector offset a slight dip in manufacturing. The services PMI hit a 7-month high of 49.8, while manufacturing slipped to 50.0, missing expectations of 51.0.
The improvement in services demand, the first since November, stabilized the economy despite remaining in contraction territory. However, private sector employment continued to decline, and business optimism stayed subdued. Input cost and output price inflation eased for the second consecutive month.
S&P Global cautioned that renewed geopolitical tensions, particularly between the US and Iran, could pressure oil and gas markets, potentially leading to further ECB tightening and economic headwinds.