French Business Activity Unexpectedly Weakens as Heat Takes Toll

France’s private sector weakened unexpectedly as extreme summer temperatures took a toll on services. S&P Global’s Composite Purchasing Managers’ Index (PMI) fell to 48.8 in August, down from 49.4 the month before, and stayed below the 50 threshold that separates expansion from contraction. The decline points to ongoing pressure in the services segment, consistent with weather-related disruption during peak heat. The release underscores how rapidly economic conditions can shift when seasonal factors hit demand and operations, and it provides an early read on momentum heading into the late-summer period.