France's Private Sector Activity Contracts at Fastest Pace in 14 Months

On April 23, a preliminary survey revealed that France's private sector business activity contracted at the fastest pace in 14 months. According to Jin10, this decline was driven by a downturn in the services sector due to the Iran war, while robust growth in manufacturing failed to offset the impact. The services PMI index fell to 46.5 in April from 48.8 in March, marking the lowest level since February 2025. Conversely, the manufacturing PMI index rose to 52.8 in April from 50.0 in March. Factory orders increased for the first time in nearly four years as customers made advance purchases in anticipation of supply shortages and price hikes. Joe Hayes, Chief Economist at S&P Global Market Intelligence, noted, "As expected, manufacturing inflation levels rose further in April due to rising raw material costs, increased transportation fees, and supply bottlenecks driving up prices. Service-oriented businesses are also feeling the pressure from rising transportation costs."