If the Bank of France operated autonomously, it would lower interest rates

Economic Developments in France: A Closer Look

The year has kicked off with a flurry of economic events worth examining, and France stands out as a focal point connecting several recurring themes. This morning’s PMI business survey offers valuable insights: the latest HCOB PMI® report reveals that France’s services sector experienced no growth in December, capping off a lackluster fourth quarter with business activity remaining largely unchanged. Similarly, new orders for services showed almost no movement compared to November, indicating stagnant demand. Whether stagnation is more concerning than simply being flat is open to interpretation, but it certainly highlights the ongoing challenges facing the sector.