The nation has been engulfed in political infighting since snap elections were announced last year, resulting in a parliamentary deadlock that has hindered financial reform efforts and raised borrowing costs.
In contrast, other areas showed improvement. Across the bloc, services climbed to 52.6 from 51.3, reaching a 14-month high, while manufacturing saw moderate gains, according to the eurozone PMI. The composite index, which combines both sectors, rose to 52.2 from 51.2, marking the fifth consecutive increase.
Even countries like Germany, which had been underperforming, saw progress driven by services, although manufacturing continued to decline.
“France is increasingly becoming an outlier in the PMI survey, with ongoing political uncertainty related to budget negotiations seemingly affecting sentiment,” noted Hare.
Nevertheless, he added that a recent business confidence survey by INSEE indicated a more optimistic outlook for the nation.
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