France’s private sector economy contracted in November by slightly more than initially expected, according to a monthly survey, as inflationary pressures weighed on the euro zone’s second-largest economy.
The final S&P Global Purchasing Managers’ Index (PMI) for France’s services sector fell to 49.3 in November, from 51.7 in October. The final Services PMI figure for November was slightly lower than the preliminary PMI reading of 49.4 points.
Any reading above 50 marks an expansion in activity, while a reading below 50 indicates contraction.
The final November composite PMI figures for France also confirmed that France’s private sector economy had contracted for the first time since February 2021.
“Taken together, the latest survey results will increase the likelihood that we will see a contraction in French GDP in the fourth quarter,” said Joe Hayes, a senior economist at S&P Global.
“The inflation story did not improve markedly in November either. Although slower rises were seen in input costs and production charges, price pressures remain historically high,” Hayes added.