France PMI data signals economic contraction

The decline from the previous reading of 51.2 pushed the index below the 50-point threshold separating expansion from contraction. Manufacturing PMI also dropped to 49.3, missing the 50.5 forecast and the previous reading of 50.6.

The flash composite PMI declined to 48.4, falling short of expectations of 50.3 and the previous 51.1 reading. All three indicators moving below 50 suggest weakening economic activity in France. The data could raise concerns about the Eurozone growth outlook while supporting expectations for interest-rate cuts by the European Central Bank (ECB).