France’s private-sector contraction eased in June as output declines in both
manufacturing and services moderated. S&P GLOBAL MARKET INTELLIGENCE’s
preliminary composite PMI rose to 47.6, a two-month high. Manufacturing PMI was
50.7, the strongest in two months; services PMI improved to 47.4, a three-month
high but still in contraction. New orders fell for a seventh month, though the
decline was the smallest since February; export orders posted a steep drop, the
second-fastest since Dec 2024. Employment stabilised after a sharp fall in May
and business confidence rose for the first time since January. Input-cost
pressures eased for the first time since February and some firms cut prices,
reducing output price inflation. S&P GLOBAL MARKET INTELLIGENCE senior chief
economist Joe Hayes said the PMI rebound offers some relief after Q1 GDP was
revised down to show QoQ contraction. He added that softer survey price
indicators, partly reflecting a recent decline in global oil, may signal easing
inflationary pressure, but shipping uncertainty in the Strait of Hormuz still
clouds the outlook.
