France posts manufacturing 48.9 services 42.9

S&P Global’s flash PMI release on May 21 showed France’s economy weakening more abruptly in May than in April, with manufacturing slipping back into contraction and services falling deeper below the 50 line that separates growth from contraction. France’s manufacturing PMI fell to 48.9 from 52.8 in April, while the services PMI dropped to 42.9 from 46.5, according to the preliminary survey. France’s composite PMI, which combines manufacturing and services, fell to 43.5 from 47.6, a 66-month low. (money.usnews.com) The survey matters because PMIs are among the earliest monthly readings on business activity in Europe, based on responses from purchasing managers about output, orders, employment and prices. (pmi.spglobal.com) A reading below 50 signals contraction. In France’s case, both sectors were below that threshold in May, with services showing the sharper deterioration. ### Why does the 42.9 services reading stand out? France’s services PMI at 42.9 was the weakest since November 2020 and came in below the 46.6 expected in a Reuters poll, according to Reuters-backed reports and Trading Economics data sourced to S&P Global. (pmi.spglobal.com) Services account for the larger share of the French economy, so a drop of that size weighed heavily on the composite figure. Reuters reported that firms linked the downturn to fuel and energy cost pressures and broader economic anxiety. (money.usnews.com) Trading Economics, citing S&P Global, said service providers also reported a steep decline in sales volumes and a marked deterioration in year-ahead sentiment. ### What does 48.9 in manufacturing say? France’s manufacturing PMI at 48.9 marked a return to contraction after April’s 52.8. Reuters said the reading was below a Reuters forecast of 52.2, indicating a sharper loss of momentum than economists had expected. (money.usnews.com) Because manufacturing had been one of the firmer parts of the economy in prior months, the reversal added to the weakness shown in the composite index. The composite reading at 43.5 shows the combined effect. Reuters described May as France’s sharpest private-sector contraction in five-and-a-half years. (money.usnews.com) That phrasing reflects the depth of the decline across both services and manufacturing in the preliminary survey. ### How bad was the euro zone picture? The euro zone flash composite PMI fell to 47.5 in May from 48.8 in April, its lowest since October 2023, according to Reuters and Trading Economics. Reuters said activity across the bloc shrank at its sharpest pace in more than two-and-a-half years as higher living costs hit demand for services and firms accelerated layoffs. (y94.com) Reuters also reported that euro zone input price inflation rose to its highest level in three-and-a-half years in May. (gurutrade.com) Other coverage of the same survey said output, new orders and employment all fell more sharply, while business confidence weakened further. ### What should readers watch next? S&P Global’s release calendar shows the flash France PMI was published on May 21 at 07:15 UTC and the flash euro zone PMI at 08:00 UTC. HCOB says it publishes PMI data for France and the euro zone alongside S&P Global. (money.usnews.com) Final May readings are typically released in early June and will show whether the flash estimates are revised. The next update to watch is the final May services and composite data from S&P Global and HCOB, which will indicate whether France’s 42.9 services reading and 43.5 composite reading are confirmed or adjusted. (money.usnews.com) (pmi.spglobal.com)