France August flash services PMI 48.4 vs 49.8 expected

France’s August flash PMI data showed the private sector remained weak, with services activity contracting more than expected at 48.4 versus 49.8 forecast and down from 49.6 previously. Composite PMI also missed expectations at 48.8, signaling another month of overall contraction, while manufacturing surprised to the upside at 51.5 versus 50.0 expected, rising above 50 for the first time since April. The report suggests France is heading for another subdued quarter as soft demand persists, with heatwaves cited as a drag on services activity. Inflation pressures eased in manufacturing, but service-sector inflation edged up again, partly linked to higher fuel costs from renewed oil-price pressures. The weak services reading is bearish for France 40 and reinforces concerns about sluggish French growth, though stronger manufacturing partially offsets the downside.