France's Private Sector Economy Sinks Into Contraction

Flash Composite Output Indexfell to a five-month low of 48.5 in November from 50.5 in October.

Any reading below 50 signals contraction.

The services index fell to a 4-month low of 48.8 from 50.9, the manufacturing output index fell to a 6-month low of 47.2 from 49.0, and the manufacturing PMI fell to a 6-month low of 47.8 from 49.1.

“November’s Flash France PMI data highlight a disappointing slide in activity following two months of marginal growth,” said Markit econmist Jack Kennedy. “Renewed weakness was evident across both services and manufacturing, and the poor set of figures underline the fragility of the economy in the face of a persistently anaemic demand environment. Although remaining above the levels seen in the first half of the year, PMI data highlight the risk of a return to recession for France in Q4 following the – 0.1% fall in GDP during Q3.”

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