- Composite PMI 48.7 vs 48.8 prelim
Little change to the initial estimates as this reaffirms the first contraction in French services activity since March last year. It comes amid a backdrop of weakening economic outlook, high inflation and tighter financial conditions with demand being hit as a result. S&P Global notes that:
"The resilience of France's service sector has finally been broken, according to the November PMI survey, which showed services activity levels falling for the first time since March 2021.
"The first reduction in backlogs in over a year-and-a-half also shows how companies have turned to their existing and unfilled order books to sustain activity, and even this was insufficient to drive another month of growth. Overall, the latest survey results will raise the likelihood that we'll see French GDP contract in the fourth quarter.
"Indeed, other indicators from the survey suggest that businesses are preparing and expecting this. Business confidence slid to a two-year low in November, while job creation slowed markedly as some companies opted to not replace voluntary leavers.
"The inflation story also failed to improve notably in November. Although slower rises were seen in input costs and output charges, price pressures remain historically elevated."