French business activity contracted for the tenth straight month in March, according to a monthly report released on Thursday. The report said the contraction was because the demand for French goods and services deteriorated and employment fell. The HCOB flash purchasing managers index for France's dominant services sector, compiled by S&P Global, fell to 47.8, indicating a contraction in activity. The manufacturing PMI also showed a decline, falling to 45.8 points. The composite PMI, which includes both sectors, dropped to 47.7 points. Economist Norman Liebke from Hamburg Commercial Bank stated that the recovery of the French economy, the second largest in the eurozone, is being postponed to at least the second quarter. Official statistics from INSEE predict zero growth in the first quarter, followed by a modest 0.3 per cent expansion in the second quarter. Furthermore, Paris has revised its 2024 growth forecast downward to 1 per cent from an earlier 1.4 per cent, following a 0.9 per cent expansion last year."
