HomeEconomyPrivate activity contracted further in August

Private activity contracted further in August

The provisional PMI index published by the S&P Global agency remains below 50 for the third consecutive month.

French economic activity contracted again in August, both in the service and manufacturing sectors, according to the provisional PMI index published on Wednesday by the S&P Global agency.

The composite index, which includes the manufacturing and service sectors, stood at 46.6 in July, a low since November 2020. Consensus was 47.5.

Activity in France’s services sector contracted further in August, hurt by weaker demand and new orders, preliminary results from a survey of S&P Global purchasing managers showed on Wednesday. /HCOB.

Activity in services in a minimum of 30 months

The “flash” PMI for the services sector fell to a 30-month low of 46.7 this month, after 47.1 in July and 47.5 expected by consensus. The 50 bar separates the growth and contraction of activity.

The “flash” PMI for the manufacturing sector came in at 46.4 after 45.1 in July and a consensus of 45.0.

“The French economy (…) is again showing signs of losing strength. For the third consecutive month, we are witnessing a contraction in the second largest European economy,” stresses Norman Liebke, an economist at the Commercial Bank of Hamburg for whom this The sheets forecast a contraction of gross domestic product (GDP) in the third quarter.

Author: OC with Reuters and AFP
Source: BFM TV

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