French Private Sector Nears Stabilisation as July PMI Climbs to 49.6

France’s private-sector downturn showed signs of easing in July, with the flash composite Purchasing Managers’ Index edging up to 49.6 from 49.1 in June, beating economists’ expectations of 49.1. Although the reading remains below the 50 mark that separates expansion from contraction, it is the strongest level since March, reflecting a modest pickup across both manufacturing and services. The manufacturing PMI improved to 48.4, slightly missing the 48.5 consensus but still marking a sequential gain, while the services gauge rose to 49.7, topping the 49.6 forecast. Survey respondents cited a slower drop in new orders and a tentative stabilisation in employment, suggesting the economy may be approaching a turning point after months of weakness. Separate data from the national statistics office showed the Manufacturing Confidence Index unchanged at 96 in July, a point below the market estimate. The production outlook indicator improved marginally to –12 from –13, indicating that factories remain cautious but see conditions deteriorating at a slower pace.