Nov 4 (Reuters) – France’s services sector contracted in October at its fastest pace since May, as protests in the euro zone’s second-biggest economy contributed to a drop-off in domestic demand, a business survey showed on Wednesday.
• The S&P Global France Services PMI Business Activity Index fell to 46.2 points in October from 51.2 in September
• Any figure above 50 points shows growth in activity, while below 50 points indicates a contraction
• That final October services PMI figure was also worse than the flash October services PMI figure, which had stood at 48.4 points
• The S&P Global France Composite PMI, which comprises both the services and manufacturing sectors, also fell to 46.6 from 51.1, similarly signalling the quickest decline in activity since May
• The final October composite figure of 46.6 was also worse than the flash October composite figure of 48.4 points
• Data last month from the official INSEE statistics agency showed that French consumer confidence had fallen to its lowest level since June 2013, impacted by the demonstrations
• “There were reports of a stalling of domestic demand and investment activity in October as clients placed decisions on hold,” said Joe Hayes, senior principal economist at S&P Global Market Intelligence
• “Against a backdrop of social unrest and surging government bond yields, both activity levels and new business in the service sector fell at the fastest rates since May,” he added
(Reporting by Sudip Kar-Gupta; Editing by Joe Bavier)
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