French Business Activity Falls as Budget Drama Curbs Demand

Pedestrians pass an empty restaurant terrace in Paris.

Photographer: Cyril Marcilhacy/Bloomberg

Business activity in France shrank for the first time since October as political turmoil over the country’s budget weighed on demand.

S&P Global’s Composite Purchasing Managers’ Index dropped to 48.6 in January from 50 in December —below the mark separating expansion from contraction. Analysts polled by Bloomberg had anticipated no change.