French Business-Activity Gauge Hits Five-Month Low on Iran

Commuters in the La Defense business district of Paris. Photographer: Benjamin Girette/Bloomberg Photo by Benjamin Girette /BloombergArticle content(Bloomberg) — French business activity declined at the fastest pace since October as the Iran war threatens to derail the country’s economic revival.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentS&P Global’s Composite Purchasing Managers’ Index dropped to 48.3 in March from 49.3 in February — remaining below the 50 mark separating expansion from contraction. Analysts polled by Bloomberg had anticipated a decrease to 49.3.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentWhile manufacturing stayed in growth territory — even improving slightly from the previous month — the gauge for services sank to 48.3.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“For now, France’s burgeoning recovery looks to be on ice,” Joe Hayes, principal economist at S&P Global Market Intelligence, said Tuesday in a statement. “A sharp reduction in business confidence backs this assessment, with the threat of higher inflation, prolonged supply-side disruption and heightened near-term uncertainty prompting a re-evaluation of the outlook.”Article contentFrance had been successfully weathering unstable governments and public finances but now faces an external threat that it can do little about. The fighting in the Middle East has sent energy costs surging, with the knock-on effects for Europe likely to be faster inflation, higher interest rates and slower economic expansion.Article contentPMIs are closely watched by markets as they arrive early in the month and are good at revealing trends and turning points in an economy. A measure of breadth of changes in output rather than depth, business surveys can sometimes be difficult to map directly to quarterly GDP.Article contentEuro-zone data will arrive at 10 a.m. CET. Composite readings from the UK and the US due later in the day are both expected to remain above 50.Article content—With assistance from Harumi Ichikura, Joel Rinneby and Mark Evans.Article content(Adds chart.)Article contentTrending 'Bleeding businesses': Number of active companies that depend on U.S. is dropping in Canada Economy Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Canada not tracking foreign students after visas lapse, auditor general says Economy Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Saudis and UAE Take Steps Toward Joining Iran War, WSJ Reports PMN Business Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. 'Bleeding businesses': Number of active companies that depend on U.S. is dropping in Canada Economy Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Canada not tracking foreign students after visas lapse, auditor general says Economy Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Saudis and UAE Take Steps Toward Joining Iran War, WSJ Reports PMN Business