France’s economy took a sharp downturn in September as PMI Services dropped significantly from 55.0 to 48.3, marking a six-month low. The broader PMI Composite also fell from 53.1 to 47.4, an eight-month low, signaling a shift back to contraction. While PMI Manufacturing saw a slight uptick from 43.9 to 44.0, it remains in contractionary territory.
According to Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank, the strong growth seen in August was short-lived, with the surge largely driven by “an Olympics-related anomaly” that has since dissipated. He noted that the situation in manufacturing continues to struggle, much like in previous months.
Chaudhry pointed out that their Nowcast predicts “near stagnation” for the French economy in Q3, aligning France with other Eurozone economies facing significant growth challenges.
