Economic decline in France accelerated in December

December’s data showed that business activity in France contracted faster than in the previous month. These factors reinforce signs of an impending recession in the eurozone's second-largest economy, as high inflation puts a strain on business activity. 

In December, the Purchasing Managers' Index (PMI) in the service sector by S&P Global hit 48.1. This figure is lower than the level of 49.3 recorded in November, also being below the forecast by Reuters at 49.1.

If the indicator exceeds 50.0, the country's business activity is on the rise. Holding below the level of 50.0 signals a decline in the PMI. 

Experts predicted the country's manufacturing sector to perform slightly better, although still remaining in a slump. The preliminary PMI for December jumped to 48.9. As for November, the level stood at 48.3. The reading in December also exceeded Reuters' forecast of 48.2.

The composite PMI for services and manufacturing fell to a 22-month low in December, hitting 48.0. Business activity in November reached 48.7, while Reuters expected it to be 48.9.