Paris Terror Attacks Act as Drag on French Hotels, RestaurantsFergal O’Brien
Growth in France’s services sector slowed this month, with hotels and restaurants reporting that the Nov. 13 terrorist attacks in Paris had a negative impact on business.
An index of activity slipped to 51.3 -- the lowest in three months -- from 52.7 in October, Markit Economics in London said in a monthly report published on Monday.
The survey was conducted from Nov. 12 to Nov. 20, with about 60 percent of responses received after the attacks, which killed 129 people and injured another 352.
“While the longer-term economic impact following the attacks remains uncertain, PMI data suggest that GDP is on course to post another modest expansion” this quarter, said Jack Kennedy, an economist at Markit.
France’s economy grew 0.3 percent in the third quarter, rebounding from stagnation in the previous three months. Studies suggest that while specific industries such as tourism suffer following attacks and confidence dips, the broader economic impact is often transitory. Markit’s services report showed that new business at firms rose to a five-month high in November.
Markit also said that an index of manufacturing rose to
50.8 in November from 50.6. While that’s the highest in 19 months, it still signals modest growth, with 50 the dividing line between expansion and contraction. A composite measure for both sectors slipped to 51.3 from 52.6.