The French economy is back in a slump and more likely to shrink this quarter amid contemporary restrictions to comprise the coronavirus.
IHS Markit’s month-to-month index of private-sector exercise dropped to 39.9 in November from 47.5 in October, a third straight month beneath the important thing 50 degree. The decline was led by providers, reflecting the closure of bars and eating places and the lack of enterprise within the hospitality sector.
The newest curbs aren’t as extreme as these applied in the course of the first wave of the pandemic, when a full halt to exercise despatched Markit’s Purchasing Managers’ Index plunging to a record-low studying of 11.1.
Still, economists have revised down their forecasts and anticipate France’s economy to shrink 3.5% this quarter. With partial lockdowns additionally in place in different nations, the euro-area economy is projected to contract 1.7%.