France June composite PMI tops forecasts as service sector recovers

France’s June flash PMI data suggests the economy remains weak but is showing some stabilization in services. The manufacturing business climate index slipped to 100 from 102 in May, below expectations of 101, indicating softer production and hiring prospects in the industrial sector. In contrast, the services PMI improved to 47.4 from 44.3, signaling an easing of contraction, though still below the 50 threshold that separates expansion from contraction. For France 40, the data is likely modestly supportive for cyclicals and domestic demand-sensitive names, but the overall message remains one of subdued growth rather than a clear recovery.