• Services PMI 47.4 vs 46.0 expected
• Prior 44.3
• Manufacturing PMI 50.7 vs 50.0 expected
• Prior 49.7
• Composite PMI 47.6 vs 46.4 expected
• Prior 44.9

It’s a minor relief for French business activity as we see a slight rebound at the end of Q2. That being said, the overall performance still points to a downturn which likely should see the economy contract in the second quarter.

Some positive developments from this month’s showing stems from a broad stabilisation of employment, the first improvement in business confidence since January and a softening of cost pressures.

However, new order inflows contracted once again at the end of the second quarter – marking seven months of uninterrupted decline.

The good news at least is that price pressures are seen easing slightly but continue to stay at elevated levels as evident below:

S&P Global notes that:

“That said, softer readings in the PMI survey’s pricing measures, which follow on from the fall in global oil prices over this past month, could signal that peak inflation is behind us and the disinflationary process is underway. However comforting that train of thought may be, it may be too soon to make such a claim given the uncertainty surrounding ship transits through the Strait of Hormuz.”

This article was written by Justin Low at investinglive.com.