France is on the cusp of recession after the eurozone nation’s key manufacturing and services industries shrank sharply in December.
Markit’s preliminary – or “flash” – purchasing managers’ index estimate for the country fell to a seven-month low of 47 in December – a figure below 50 signals contraction and one above expansion.
Services activity decreased for the second month and at the fastest pace since June, while manufacturers posted “marked decline in production” contracting for a fifth month.
Chris Williamson, chief economist at Markit, said: “France looks increasingly like the new ‘sick man of Europe’, as a second successive monthly contraction may translate into another quarterly decline in GDP, pushing the country back into a technical recession.”
The Telegraph has the full article