French service sector contracts for fifth month, PMI falls to 48.2

Published 05/02/2025, 12:08
French service sector contracts for fifth month, PMI falls to 48.2

Investing.com -- France’s service sector saw a quicker contraction than initially estimated in January, marking its fifth straight month of decline, according to a survey released on Wednesday.

The downturn is attributed to ongoing weak demand and political uncertainty.

The HCOB France Services Purchasing Managers’ Index (PMI), which is compiled by S&P Global, recorded a drop to 48.2 in January, down from 49.3 in December.

This move takes the index further below the 50.0 threshold, which distinguishes growth from contraction.

The preliminary services PMI for January was reported at 48.9 points, indicating that the final figure was worse than the initial estimate.

The PMI is a key indicator of business health, and a reading below 50 suggests contraction.

This continued contraction in France’s service sector underscores the challenges faced by the country’s economy amid weak demand and political uncertainty.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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