Economist: France's private sector continues to lack momentum

Golden Ten Data reported on March 4 that Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, commented on the French PMI data: "The French private sector lacks growth momentum. Although the composite index has risen slightly, the overall level remains unsatisfactory. The contrast with Germany further highlights this weakness—previously released preliminary PMI data showed initial signs of economic improvement in Germany, while France has yet to observe such a shift. Nevertheless, we still see growth potential, such as support from defense-related manufacturing industries like aerospace; in addition, given France's comparative advantage in energy prices, capital expenditure in the artificial intelligence sector may be particularly attractive. Business activity in the service sector basically stagnated in February. Many companies reported that uncertainty persists, delaying investment decisions and dragging down new business. Demand remains weak, reflecting cautious spending behavior by customers. Due to declining foreign demand, this impact has been further exacerbated, and the relevant sub-index has remained below the 50.0 threshold for seven consecutive months."