AI Data Insight
France's latest flash composite PMI unexpectedly retreated from the previous 49.6 to 48.8, falling below the market expectation of 49.5 and remaining in contraction territory for the eighth consecutive month. Although manufacturing briefly rebounded, the service sector, dragged down by extreme heat and political uncertainty, was the main culprit for the overall data decline. The weak economic performance is expected to further boost interest rate cut expectations for the European Central Bank (ECB).