- Services PMI 46.8 vs 47.4 prelim
- Prior 44.3
- Composite PMI 47.2 vs 47.6 prelim
- Prior 44.9
The final readings are softer than the initial estimates but at least reaffirms that the downturn in the French economy is less profound in June than it was in May. Of note, the PMI data reveals the slowest declines in output and new orders since March.
Besides that, there was a slight pick-up in business confidence and a softening of inflationary pressures. So, that adds to some good news for ECB policymakers in guarding against stagflation pressures.
S&P Global notes that:
"There was a reduced drag on demand from non-domestic customers, as evidenced by a markedly softer fall in new export business. The latest survey data indicated the weakest decline since March, with the pace of deterioration easing sharply from May's five-and-a-half-year record.
A welcome development for firms was on the inflation front as June survey data signalled an easing of cost pressures for the first time since the outbreak of war in the Middle East. However, input prices continued to increase sharply amid reports of greater fuel, energy and salary costs.
As for prices charged, French services companies registered uplifts once again in June, extending the current sequence of inflation to three months. Services fees rose at a slower pace than in May, however, amid reports from some companies of a reluctance to increase their charges due to competition and fears of losing clients."
