PARIS (Reuters) –
France’s services sector contracted in May a little less quickly than first estimated, although business growth expectations fell to a five-year low amid uncertainty over trade tariffs, an S&P Global survey showed on Wednesday.
The HCOB final services Purchasing Managers Index (PMI) for France rose to 48.9 points in May from 47.3 in April.
The index remained below the 50-point threshold that indicates growth although it was better than preliminary “flash” May reading of 47.4 points.
The final May composite PMI comprising both the manufacturing and services sectors rose to 49.3 points from 47.8 in April.
However, the survey’s measure of business expectations in the services sector fell to 50.2 points in May from 52.3 in April – marking its lowest level in five years.
“Overall market conditions remain constrained, with both domestic and foreign demand continuing to decline, though at a slower pace,” said Hamburg Commercial Bank economist Jonas Feldhusen.
“While there are tentative signs of a recovery in market demand, optimism for improvement in the coming year has deteriorated further, suggesting that service providers remain unsettled by ongoing uncertainty,” he added.
(Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson)
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