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France's services sector contracts in July by more than first thought-PMI

Published 03/08/2023, 08:57
Updated 03/08/2023, 09:01
© Reuters. Businessmen enjoy the good weather at lunch time under the Arche de la Defense, in the financial and business district west of Paris, as warm and sunny weather continues in France, March 13, 2014.  REUTERS/Charles Platiau/File Photo

By Sudip Kar-Gupta

PARIS (Reuters) - France's services sector contracted by a bit more than first forecast in July, according to a survey, as fall in new orders weighed on businesses in the euro zone's second-biggest economy.

The HCOB France final purchasing managers index (PMI) for the services sector, as compiled by S&P Global, fell to 47.1 points from 48.0 points in June - below July's flash services PMI which had given a reading of 47.4 points.

Any figure below 50 points marks a contraction in activity, while above 50 points shows an expansion.

© Reuters. Businessmen enjoy the good weather at lunch time under the Arche de la Defense, in the financial and business district west of Paris, as warm and sunny weather continues in France, March 13, 2014.  REUTERS/Charles Platiau/File Photo

The final composite PMI figure for July - which comprises both the services and manufacturing sectors - also fell to 46.6 points from 47.2 points in June, which HCOB said marked the biggest decline in the composite PMI figure since November 2020.

"The French service sector is falling further behind as activity dropped for the second month in a row in July. At the same time there is a lack of new business, especially from abroad, which does not bode well for the performance of service companies over the next few months," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

 

 

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