PARIS (Reuters) – French business activity shrank for a tenth consecutive month in March, according to a monthly survey, as demand for French goods and services deteriorated and employment fell.
The HCOB flash purchasing managers index for France’s dominant services sector, compiled by S&P Global, fell to 47.8, down from 48.4 in February and below the 48.7 forecast in a Reuters poll.
Any figure below 50 marks a contraction, while above 50 shows an expansion in activity.
The flash manufacturing PMI fell to 45.8 points – also worse than a Reuters poll forecast for 47.5 points and below February’s final manufacturing PMI of 47.1.
The flash composite PMI, which comprises both the services and manufacturing sectors, fell to 47.7 points from 48.1 in February, and worse than a Reuters poll forecast for 48.6.
“The French economy is delaying its recovery into at least the second quarter,” said Hamburg Commercial Bank economist Norman Liebke.
The French economy, the second largest in the euro zone, is set to record a zero growth in the first quarter, the official stats agency INSEE said last week, adding it would then expand a modest 0.3% in the second quarter.
Last month Paris lowered its 2024 growth forecast to 1% from a prior 1.4% after a 0.9% expansion last year.
(Reporting by Inti Landauro; Editing by Toby Chopra)
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