Bloomberg has learned about a sharp drop in business activity in France

Business activity in France declined sharply in May, breaking a record decline in more than five years, which could threaten the country's economy with recession. This was reported by Bloomberg on May 21, citing S&P Global data.

The Purchasing Managers Index (PMI) of France fell to 43.5 points from 47.6 in April, the agency's analysis showed. At the same time, the indicator has been below the neutral 50 points for the fifth month in a row, which means the continuing downward trend and its sharp strengthening over the past month.

The sectors of production (48.9) and especially services (42.9) were affected. French companies told the publication that they were particularly vulnerable to the consequences of the escalation in the Middle East caused by the start of the US and Israeli military operation against Iran. There is a general "economic anxiety" among the respondents due to instability and rising energy prices, the agency added.

"This shock has significantly increased the risks of recession for the eurozone's second—largest economy," said Joe Hayes, chief economist at S&P Global Market Intelligence, calling French economic activity "terrifying."

They went on a diet: what threatens the world with the destruction of oil demand

The war in the Persian Gulf leads to a forced reduction in the consumption of black gold

The Wall Street Journal reported on April 30 that the eurozone economy slowed growth in the first quarter amid a spike in energy prices caused by the conflict in the Middle East. Against this background, the European Central Bank lowered its forecast for the growth of the eurozone economy in 2026 to 0.9%.