News24
23 Sep 2020, 14:41 GMT+10
French business activity fell in September - its first drop in four months - according to a key survey released Wednesday which found firms blamed renewed coronavirus disruptions for the slowdown.
The preliminary reading of IHS Markit's PMI survey for September came in at 48.5 points, with a reading under 50 indicating a contraction.
The index, which is based on surveys of businesses about their current activity and expectations, had come in at 51.6 in August.
"The sharp rise in Covid-19 cases recorded across France during September helped to explain the first fall in business activity since May," said IHS Markit economist Eliot Kerr.
Infections have been surging across France in recent weeks and authorities in may areas have been tightening restrictions on gatherings but have so far avoided lockdowns.
READ HERE | Covid-19: Second wave hitting Europe will be dire for SA exports, tourism
Those restrictions have "caused hesitancy among businesses due to fears of a second round of temporary business closures," said Kerr in a statement.
IHS Markit said employment fell in September, but despite that firms were still clearing their backlogs of work and new orders had fallen.
It found that the drop in activity was centred among service firms with manufacturing companies still expanding.
While the survey also found that French firms remain optimistic about the future, Kerr said that "should the current trajectory of infection rates persist, that confidence is likely be tested in the coming months."
The French government has unveiled a massive spending plan to jump start the economy and avoid mass unemployment after lockdowns earlier this year caused unprecedented disruption.
The virus impact has plunged the French economy into its worst downward spiral since 1945, with gross domestic product plunging 13.8% in the second quarter, after a drop of more than five percent in the first.
Get a daily dose of Switzerland Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Switzerland Times.
More InformationPARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
BEIJING, July 5 (Xinhua) -- China's Ministry of Commerce said Saturday that it has accepted price undertakings from 34 European Union...
Bulgaria registered the second-largest increase in housing prices among EU member states in the first quarter of 2025, according to...
Options reportedly include suspending the trade pact, an arms embargo, or sanctions on Israeli ministers, soldiers and settlers The...
BEIJING, July 5 (Xinhua) -- The European Union (EU) is once again casting a wary eye eastward, as alarmist claims of a new China shock...
(Photo credit: Stephen Lew-Imagn Images) Bojan Bogdanovic announced his retirement Sunday after 10 NBA seasons with six teams, citing...
WASHINGTON, D.C.: The Trump administration has made public a visa decision that would usually be kept private. It did this to send...
MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...