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French output and employment sharply decline, Frederik Ducrozet warns
Frederik Ducrozet reports that French PMIs have experienced one of the largest decreases in output and employment outside of the covid period and the sovereign debt crisis.
He also observes that inflationary pressures are mounting, and tighter financial conditions could worsen the situation.
Earlier this year, Frederik Ducrozet highlighted that euro area PMIs were affected by supply chain disruptions in industry, while service sector price effects remained limited here. He also reported that the ECB’s SAFE survey showed rising selling price expectations despite stable long-term inflation forecasts and tighter funding conditions here. These developments provide context for the recent deterioration in French PMIs.
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