French Private Sector Lacks Growth Momentum, Says Economist

Hamburg Commercial Bank's junior economist, Jonas Feldhusen, commented on France's PMI data, stating that the French private sector is lacking growth momentum. According to Jin10, although the composite index has slightly increased, the overall level remains unsatisfactory. This weakness is further highlighted when compared to Germany, where preliminary PMI data has shown signs of economic improvement, a shift not yet observed in France. Despite this, Feldhusen noted potential growth areas, such as the aerospace and defense-related manufacturing sectors. Additionally, France's comparative advantage in energy prices may make it particularly attractive for capital expenditure in the artificial intelligence sector. In February, business activity in the service sector was largely stagnant, with many companies reporting ongoing uncertainty, delaying investment decisions and hindering new business. Demand remains weak, reflecting cautious spending behavior among customers. This impact is exacerbated by declining foreign demand, with the related sub-index remaining below the 50.0 threshold for seven consecutive months.