Flash PMI: French Services Sector Shrinks To 5-Month Low in June
2022.06.23 10:51
By Scott Kanowsky
Investing.com — Business activity in France’s key services sector shrank to a five-month low in June as soaring inflation sparked fears of a global economic slowdown, according to a preliminary survey on Thursday.
Data compiler S&P Global said its June flash purchasing manager index for France’s service sector fell to 54.4 points, down from 58.3 in May, and far below analyst expectations.
A reading above 50 indicates expansion.
Meanwhile, the flash PMI index for France’s manufacturing sector also slumped to 51.0 points – the lowest level in 19 months and missing estimates.
The composite data – which brings together both the manufacturing and services sectors – dropped to a worse-than-expected reading of 52.8 points.
S&P Global Senior Economist Joe Hayes warned the data hints at “tangible recession risks for France.”
“While a loss of momentum was to be expected as the resumption of economic activities post-lockdown boosted growth, the slowdown has been aggravated by substantial price pressures. This has been particularly aggressive in the manufacturing sector, where output and new orders both declined strongly and for the first time since October last year, serving as a worrying sign for what could be to come for the service sector,” Hayes said.
