Financial News: French Private Sector Activity Weakens

French Private Sector Activity Weakens

09/23/2025 - 03:49:00 (RTTNews)

(RTTNews) - France's private sector showed fresh signs of weakness in September as output dropped at faster rates in both manufacturing and services, flash survey data from S&P Global revealed on Tuesday.

The HCOB composite output index fell unexpectedly to 48.4 from 49.8 in the previous month. The reading was forecast to rise to 49.9. The score remained below the neutral 50.0 mark for a thirteenth straight month. Moreover, the reading signaled the biggest contraction since April. There were renewed weakness in both manufacturing and services. The services Purchasing Managers' Index posted 48.9, down from 49.8 in August. The score was seen at 49.7.

Likewise, the manufacturing PMI slid more-than-expected to 48.1 in September from 50.4 a month ago. The score was expected to fall to 50.2.

Hamburg Commercial Bank Junior Economist Jonas Feldhusen said, "We expect GDP growth rates to be between 0.5 and 1 percent in both 2025 and 2026, with the increasingly tense domestic political situation likely to have a negative impact on household consumption and investment decisions."

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