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- French service providers saw output fall for the first time in two-and-a-half years during December - Markit
French service providers saw output fall for the first time in two-and-a-half years during December - Markit
French service providers saw output fall for the first time in two-and-a-half years during December, amid disruption due to the recent 'gilets jaunes' protests. The demonstrations also led to the first decline in new business since February 2016, which partly reflected a contraction in new exports. Lower demand led to softer growth in outstanding business, despite the weakest pace of hiring for 20 months. Meanwhile, confidence towards the business outlook fell for the third month in a row to reach its lowest level since November 2016.
The headline seasonally adjusted IHS Markit France Services Business Activity Index - which is based on a single question asking respondents to report on their actual change in business activity at their companies compared to one month ago - fell to 49.0 in December, down from 55.1 in November. The result pointed to a first decline in business activity for two-and-a-half years.
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