- Prior 48.0
- Composite PMI 50.4 vs 49.9 prelim
- Prior 47.7
Demand conditions are seen picking up, helping to bolster French services activity in November. Of note, this saw the first monthly expansion in new business since August 2024. Meanwhile, price pressures were rather benign so that isn’t going to do much to impact the ECB outlook. HCOB notes that:
“Finally, some positive news. For the first time in over a year, output in France’s private sector has increased. In November,
the Composite PMI climbed back above the growth threshold, driven by a notable rebound in services business activity.
However, manufacturing remains a drag on overall performance, posting its steepest fall in nine months and widening the
gap between the two sectors.
“The improvement in services is encouraging, yet it remains to be seen whether this is just a one-off uptick or the start of a
sustained recovery. The coming months will provide clarity. At least, order intakes are moving in the right direction, with
domestic demand improving and foreign orders stabilising.
“Against this backdrop, business expectations remained cautious and at a relatively low level, though they improved in
November. If the government manages to reach a budget compromise and reduce political uncertainty, household
consumption and business investment could benefit from a more stable policy environment.
“The lingering weakness in services is reflected in employment and outstanding business volumes. After months of subdued
activity, incomplete work volumes continue to shrink, prompting companies to halt recent hiring trends and slightly reduce
headcount
