French Services Sector Sees Continued Contraction in April
PARIS (Reuters) -
France's dominant services sector contracted for the eighth consecutive month in April, as new orders fell sharply, a survey showed on Tuesday.
The HCOB France Services PMI Index, compiled by S&P Global, dropped to 47.3 in April from 47.9 in March, indicating a faster pace of contraction in the sector. Any reading below 50 signals a contraction in activity.
The final April figure was up from a flash services PMI reading of 46.8.
The survey highlighted a rapid and accelerating decrease in new orders, with demand conditions remaining weak and competitive pressures keeping prices charged stable.
"April marked another month of declining activity in the French private sector," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.
"The French services sector remains on a downward trajectory. Business activity declined again in April, attributed to lower customer demand and generally poorer market conditions," Feldhusen said.
Despite the ongoing contraction, French services companies showed a slight increase in optimism regarding the 12-month outlook, although confidence remained below historical averages due to global uncertainties.
Employment in the sector continued to decline, with firms citing recruitment difficulties and non-replacement of leavers as common methods for reducing workforce capacity.
The composite PMI, which includes both manufacturing and services, declined to 47.8 in April, from 48.0 in March.
The final April figure was up from a flash composite PMI reading of 47.3.
(Reporting by Dominique Vidalon; Editing by Toby Chopra)
