France Services Sector Contracts Fastest Since May
France's services sector experienced its sharpest decline since May as social unrest and rising bond yields dampened domestic demand and consumer confidence.
The French services sector contracted in October at the fastest pace since May, according to the S&P Global France Services PMI Business Activity Index. The index fell to 46.2 points from 51.2 in September, a decline driven by a drop in domestic demand and investment activity as clients delayed decisions.
S&P Global Market Intelligence reported that the broader France Composite PMI, which tracks both services and manufacturing, also dropped to 46.6 from 51.1. This downturn occurred against a backdrop of social unrest and surging government bond yields, which caused activity levels and new business in the service sector to fall rapidly.
Complementing these findings, data from the Institut National De La Statistique Et Des Etudes Economiques indicates that French consumer confidence has fallen to its lowest level since June 2013. Ongoing demonstrations have further impacted consumer sentiment and overall economic activity.
