French S&P Global Services PMI Final (Mar) 48.8 vs. Exp. 48.3 (Prev. 49.6)
- "The resolution of the budget deadlock earlier this year has failed to provide France's economy with a springboard into higher growth during the first quarter, according to the latest PMI numbers. That said, the local elections in March provided yet another political event for businesses to contend with, so we may need to wait until April data to make concrete conclusions."
- "Prices were where the Middle East war showed up most starkly in the March PMI figures. Input price inflation accelerated sharply, hitting its highest level since July 2024 as the oil price shock drove fuel costs up across France."
- "Much uncertainty lies ahead, a condition which French businesses have become rather accustomed to in recent years given the domestic political environment."
Context
The French S&P Global Services PMI came in at 48.8, beating the expectation of 48.3 but down from the previous month's 49.6, indicating contraction in the services sector. This suggests the budget resolution has not spurred growth, and ongoing political uncertainty could be affecting business confidence. The rising input price inflation linked to external factors like the Middle East conflict is also noteworthy, potentially pointing to broader inflation concerns in the Eurozone.
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