Preliminary June services PMI 48.8 vs 49.3 in May (Il Sole 24 Ore Radiocor) - London , 21 Jun - In June, France's purchasing managers' index for the manufacturing sector fell to a two-month low of 45.3 from 46.4 in May while that of the services sector fell to a three-month low of 48.8 from 49.3 the earlier month, according to preliminary data released by S&P Global and the Hamburg Commercial Bank (HBOC).

The manufacturing output index was at a five-month low of 45.3, down from 46.9, while the composite output index, a weighted average of manufacturing output and services PMI, was at a four-month low of 48.2 versus 49.3 the previous month. A reading above 50 signals expanding sector activity while one below a contraction.

'The French economy likely grew by 0.1% in the second quarter of 2024. At least that's what our HCOB nowcast model suggests, with more pronounced growth in the service sector.

Although the Composite PMI only crossed the threshold of 50 once this quarter, the index is still stronger compared to the first quarter of this year. However, the French economy seems to have weakened again in June with new orders coming in lower, especially from the services sector. For the third and fourth quarter, we expect a GDP boost from the Olympics taking place in July and August in France," commented Norman Liebke, economist at Hamburg Commercial Bank.

'The uncertainty of the upcoming elections has French businesses stalling and fearing tougher times. According to anecdotal evidence, some panel members linked lower activity levels to the upcoming elections. This was also seen in new orders, especially in the service sector, which declined for the first time in three months. In addition, output expectations for the coming twelve months have weakened, partially due to higher uncertainty about the upcoming election, but also due to higher geopolitical risks.".

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(RADIOCOR) 21-06-24 09:29:25 (0195) 5 NNNN