France Economy Shrinks Sharply To 47.6 In April

France’s private sector has slipped deeper into contraction at the start of the second quarter, with S&P Global flash data showing the Composite PMI Output Index falling to 47.6 in April from 48.8 in March, its lowest since February 2025. The decline marks the fastest drop in economic activity in 14 months, driven by a weakening services sector. The Services PMI Business Activity Index dropped to 46.5 from 48.8, also a 14-month low, as cautious customers reduced spending and sales volumes fell at the fastest pace in a year. In contrast, manufacturing showed strength, with the manufacturing PMI rising to 52.8 from 50.0 and output hitting 52.9 from 48.6, marking 47-month and 50-month highs. However, this growth was linked to advance orders ahead of expected shortages and price increases. Input cost inflation climbed to a three-year high, with manufacturing costs rising at the fastest rate since June 2022, driven by higher energy, transport, and raw material prices.