In France, François Hollande’s troubled socialist administration had hoped that a series of major investments and labour market reforms would bear fruit before the summer holiday season. However, unemployment has remained high, order books are low and consumer confidence has waned.
Financial data provider Markit, which produces the PMI surveys, said: “At the heart of France’s woes are a stagnant services economy, which points to weak domestic demand and falling confidence among business and households, as well as an increasingly alarming rate of decline in the manufacturing sector.”
The euro reacted to the generally positive news by rallying from an eight-month low against the dollar to $1.34. It rose against the pound to 79.20 pence, having slumped to a 23-month low on Wednesday.
via The Guardian