Economics
France Unexpectedly Joins Germany With Shrinking Economy
- PMI slumps to 49.8 -- more than estimated, lowest in 18 months
- German output fell for a second month in August, survey shows
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French output is contracting for the first time in a year and a half, mirroring the trend seen in Germany as Europe’s biggest economies succumb to record inflation and increasing uncertainty from the war in Ukraine.
A gauge of French private-sector activity by S&P Global dropped in August to its lowest level since the pandemic-related disruptions of early 2021. It fell more than economists had expected, dipping below the threshold that separates expansion from contraction.