France's Economic Growth Stalls as December PMI Data Shows Stagnation
France's economy ended 2024 in stagnation, with the services sector PMI falling to 50.1 in December. The composite PMI dropped to 50.0, highlighting the impact of political uncertainty and subdued U.S. demand.
Insights:
France's economy closed 2024 on a stagnant note, as revealed by the latest Purchasing Managers' Index (PMI) data released by S&P Global and Hamburg Commercial Bank. The final December reading for the services sector PMI fell to 50.1 from 51.4 in November, barely holding above the growth threshold. The composite PMI, which includes both services and manufacturing, dropped to an even 50.0, the dividing line between expansion and contraction. This marks the culmination of a year characterized by political instability domestically and weakening demand from abroad, particularly from the United States 
US.
US.The December services PMI was weaker than the preliminary flash estimate of 50.2, while the composite PMI also underperformed compared to the flash reading of 50.1. A PMI reading above 50 signifies growth, while below 50 indicates contraction. The data highlights that new business and employment levels remained virtually unchanged in December, reflecting a pause in hiring and growth initiatives amid uncertainty. New orders, especially export orders, disappointed, with panelists citing subdued demand from the U.S. market.
