PARIS, Dec 16 (Reuters) – French private sector business growth slowed to a near halt in December, according to a monthly survey from S&P Global, which said ongoing political uncertainty was continuing to weigh on the euro zone’s second-biggest economy.
The HCOB France composite flash PMI for December edged down to 50.1 points from 50.4 in November, S&P Global reported. This reading, just above the 50.0 mark that separates growth from contraction, points to near-stagnation in the private sector.
The flash services PMI for December fell to 50.2 points from 51.4 in November, marking a two-month low, although France’s manufacturing sector fared better, with its flash PMI rising to 50.6 points – a 40-month high – from 47.8 in November.
S&P Global said the manufacturing sector had benefited from growth in the aviation industry. In November, French aerospace group Safran said it expected a tripling in its annual revenue from India, the world’s fastest-growing aviation market.
Nevertheless, S&P Global added that ongoing political worries, with the government racing to pass a budget before the end of 2025, was hindering French business.
“French private sector business conditions appear largely static in December. The HCOB flash PMI remains marginally in growth territory, yet it signals a softer expansion compared to the prior month, reflecting an economy still weighed down by uncertainty among households and firms,” said Jonas Feldhusen, junior economist at Hamburg Commercial Bank.
(Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson)
