The activity of the private sector in France fell in July, for the 11th consecutive month, a contraction, although very slight compared to the previous months, according to the PMI Flash index published on Thursday, July 24 for S&P Global.
“Optimism has been delayed both in the manufacturing sector and in services, companies that say they are concerned about the reduction of budgets, for the weakness of sales perspectives and for the climate of political uncertainty in France,” explained the authors of the barometer.
By 2025, INSE provides a net brake for French growth, with an increase in the Gross Domestic Product (GDP) with 0.6% after 1.1% in 2024, in a context of budgetary restrictions and global economic uncertainty.
The euro zone is better
On the contrary, the economic activity of the private sector has experienced its greatest growth in July in the euro zone since August 2024, according to the same index.
This barometer, calculated on the basis of corporate surveys, straightened up to 51 in July, against 50.6 in June. It is the seventh consecutive month of increase, at the most sustained rate in eleven months, it has been specified.
“For the first time in four months, it is the services sector that has registered the greatest expansion, the growth rate of the service activity that has reached its highest level since last January,” they said.
“In the industry, on the other hand, the increase in production has slowed down very slightly compared to June, and has published a marginal rhythm,” added the press release. But “the recession of the manufacturing sector seems to be coming to an end.”
Cyrus de la blonde, a HCob economist, points out that moderate growth in the manufacturing sector is carried by Germany and most countries in the euro zone, “with the exception of France whose weakness continues to weigh on general performance.”
“Germany should register weak economic growth in July, while France is moving towards a slight contraction,” he predicts.
Source: BFM TV
