French Economy Probably Saw 0.5% Contraction in Second Quarter
- Composite purchasing managers’ index drops to 47.3; est. 51
- June data point to contraction in manufacturing and services
A measure for manufacturing in France decreased further into negative territory.
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The French economy probably slumped in the three months through June, with purchasing manager indexes suggesting a 0.5% contraction from the previous quarter.
“Prior to the June reading, our nowcast model had signaled economic growth of 0% for the second quarter, with manufacturing contracting and services expanding,” said Norman Liebke, an economist at Hamburg Commercial Bank. The new June figures change the picture as “now not only the manufacturing sector but also the services economy is expected to contract, and economic growth turns negative overall along with it.”