France’s services sector contraction slowed in July, though the PMI reading missed expectations amid persistent private sector weakness.
France’s services PMI climbed to 49.6 in July from 46.8 in June, signaling a slower contraction in the sector. However, the reading fell short of the 49.8 estimate, reflecting ongoing challenges in the economy.
The composite PMI, which tracks both services and manufacturing, also improved but remained below the 50 threshold that separates expansion from contraction. June’s services PMI stood at 46.8, while the composite index was similarly subdued.
Private sector activity in France continues to face headwinds, with demand softening and business confidence restrained. The data underscores the uneven recovery in the eurozone’s second-largest economy.