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PARIS (Reuters) -France’s services sector showed signs of stabilising in June, with the pace of contraction in business activity reaching its slowest rate in nine months, a survey by S&P Global showed on Thursday.
The HCOB France Services final PMI for June rose to 49.6 points from 48.9 in May, indicating only a very slight reduction in activity in the sector. A reading below 50 suggests contraction while above that signals growth.
The final June services PMI figure came in above the flash June services PMI figure of 48.7 points.
Jonas Feldhusen, junior economist at Hamburg Commercial Bank, said S&P Global’s survey showed growth in new export orders and increased business confidence, although uncertainty over U.S. President Donald Trump’s tariffs could weigh on sentiment.
“Business sentiment among French service providers improved markedly in June. Easing inflationary pressures and a less restrictive monetary policy stance are expected to support household consumption and business investment over the coming year,” said Feldhusen.
“However, uncertainty surrounding potential tariff measures -pending a decision on July 8 – could weigh on sentiment in the near term. In light of still-muted demand conditions, service sector firms are actively exploring opportunities to adjust staffing levels downward,” he added.
The final June composite PMI, which combines the manufacturing and services sectors, slipped to 49.2 points from 49.3 in May, indicating a continued slight reduction in private sector business activity. Still, the final reading was above the flash figure of 48.5 points.
(Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson)
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