Financial Insights That Matter
(Bloomberg) — Private-sector business activity in France contracted less than anticipated, with an uptick in manufacturing unable to offset continued political uncertainty.
Most Read from Bloomberg
S&P Global’s Composite Purchasing Managers’ Index increased to 47 in March from 45.1 in February, remaining lodged well below the 50 threshold separating growth from contraction, data Monday showed. Analysts had expected a more modest improvement to 46.1.
“France’s economy is struggling to gain momentum,” said Tariq Kamal Chaudhry, an economist at Hamburg Commercial Bank. While the political landscape has become more stable, “there is still a high degree of uncertainty regarding future economic policy,” he said.
The euro zone’s second-biggest economy has faced multiple headwinds of late as concerns about US President Donald Trump’s tariff threats and their impact on Europe emerged on top of political turmoil over this year’s delayed budget.
Earlier this month, the Bank of France cut its outlook for 2024 and 2025, while statistics agency Insee revised down its assessment of recent output. DBRS Morningstar lowered its outlook on the country’s AA(high) rating on Friday to negative, citing “risks regarding France’s capacity to reduce its large fiscal deficit and high public debt ratio in the coming years, not least related to rising debt-interest costs.”
Monday’s data showed a significant leap for manufacturers compared with the previous month – exceeding all forecasts in a Bloomberg survey – and only a slight uptick in the services sector.
That stands in contrast to a survey published Friday that revealed an unexpected decline in optimism among factories, while there was an improvement in retail and stability in the services sector.
PMIs are closely watched by markets as they arrive early in the month and are good at revealing trends and turning points in an economy. A measure of breadth of changes in output rather than depth, business surveys can sometimes be difficult to map directly to quarterly GDP.
German and euro-area PMIs are due later in the day.
–With Assistance from Joel Rinneby, doesn’t grow up and Mark evavas.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.