French business activity contracts further in August as demand conditions remain subdued

France’s private-sector activity contracted again in August, with flash PMI readings pointing to softer demand. The August flash services PMI fell to 48.4, versus 49.8 expected (prior 49.6), while the flash manufacturing PMI rose to 51.5 (prior 49.8). The composite PMI slipped to 48.8 from 49.5 expected (prior 49.4), reinforcing concerns about another subdued quarter. New orders decreased modestly, extending falling sales volumes to nine months. Input price inflation eased to a five-month low, though output charges continued to rise at roughly the same pace. Extreme summer heat was cited as weighing on activity and demand.