France January flash services PMI 49.2 vs 49.8 expected

• Prior 49.5
• Manufacturing PMI 50.8 vs 49.6 expected
• Prior 49.2
• Composite PMI 49.0 vs 49.5 expected
• Prior 49.1

It's a bit of a mixed report as the French services sector continues to highlight a marginal contraction but industry activity improved to a 7-month high. That said, the overall composite reading still points to a third successive monthly decline in output for the French economy but at least the downturn is relatively modest so far. S&P Global notes that:

“Although the latest PMI results for France showed its economic downturn extended into a third month, the decline in activity was once again fairly restrained and most certainly not of the nature many had expected prior to this winter. There were plenty of other positives to be gleaned from the latest data too, such as a further easing of input price inflation and a pick-up in business confidence. France’s labour market also continues to demonstrate its resilience, with employment growth accelerating to a three-month high.

“That said, the downturn remains demand-driven, and overall new business inflows fell again in January. In addition to persistent high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, which has eroded client purchasing power, rising eurozone interest rates present another drag to demand as borrowing costs increase. However, increased business optimism and stronger hiring suggests there are plenty of companies across France who are preparing for the downturn to be short-lived.”