Financial News: French Private Sector Downturn Deepens

French Private Sector Downturn Deepens

06/23/2025 - 05:35:00 (RTTNews)

(RTTNews) - France's private sector output declined further in June as manufacturers joined services providers in the contraction territory, flash survey results from S&P Global showed on Monday.

The HCOB flash composite output index declined to 48.5 in June from 49.3 in the previous month. A reading below 50.0 indicates contraction.

Although the fall was moderate, it took the current sequence of reduction to ten months.

The service economy was the main source of private sector weakness in the last two months. In June, the manufacturing industry slipped back into contraction by recording its fastest drop since February.

The services Purchasing Managers' Index registered 48.7 in June, down from 48.9 in the prior month. The score was forecast to rise to 49.2.

The manufacturing PMI slid unexpectedly to a four-month of 47.8 from 49.8 a month ago. The score was seen unchanged at 49.8.

The survey showed deterioration in demand for goods and services. Job cuts were also recorded, as outstanding business volumes decreased in June.

The rate of input cost inflation was broadly similar to May, while selling prices rose only marginally due to a lack of sales.

Nonetheless, there was a rebound in business confidence from May's recent low to an eight-month high.

"This is a little setback. Since the middle of the first quarter, the headline French HCOB PMI has risen significantly, which had sparked hopes for a recovery in the French private sector," Hamburg Commercial Bank Junior Economist Jonas Feldhusen said.

"While the ECB's interest rate cuts, deregulation efforts at the EU level, and planned defence investments are likely to continue providing support to the manufacturing sector, uncertainties surrounding global trade and geopolitics - now further exacerbated by escalations in the Middle East - as well as global competition, are dampening the outlook," Feldhusen added.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Reaches Five-Month High In July (02 hr(s), 03 min(s), 24 sec(s) ago)
(RTTNews) - After reporting a substantial rebound by U.S. consumer sentiment in the previous month ...Full Story»

U.S. Housing Starts Rebound More Than Expected In June (03 hr(s), 02 min(s), 24 sec(s) ago)
(RTTNews) - New residential construction in the U.S. rebounded by more than expected in the month ...Full Story»

U.S. Housing Starts Surge 4.6% In June, More Than Expected (04 hr(s), 08 min(s), 24 sec(s) ago)
(RTTNews) - New residential construction in the U.S. rebounded by more than expected in the month ...Full Story»

Italy Current Account Surplus Grows In May (06 hr(s), 11 min(s), 24 sec(s) ago)
(RTTNews) - Italy's current account surplus increased in May from the previous year, the Bank ...Full Story»

Eurozone Construction Output Falls 1.7% (06 hr(s), 32 min(s), 24 sec(s) ago)
(RTTNews) - Eurozone construction output declined at the fastest pace in nearly two-and-a-half yea ...Full Story»

Eurozone Current Account Surplus Surges (06 hr(s), 46 min(s), 24 sec(s) ago)
(RTTNews) - The euro area current account surplus increased sharply in May largely due to the rise ...Full Story»

Italy Construction Output Falls 1.4% (08 hr(s), 28 min(s), 24 sec(s) ago)
(RTTNews) - Italy's construction output decreased in May after recovering in the previous mont ...Full Story»

Malaysia GDP Growth Improves In Q2 (09 hr(s), 09 min(s), 24 sec(s) ago)
(RTTNews) - Malaysia's economic growth improved in the second quarter driven by strong domesti ...Full Story»