France’s economy has been damaged due to the attacks in Paris. Reports released on Monday morning indicate that the private sector in France has hit a three-month low, while other countries in the euro zone have experienced faster-than-expected growth in the private sector.
France’s Market’s Flash France Composite Output Index dropped to 51.3 in November, down from 52.6. The good news is that any reading above 50 is an indication of growth, but the decline month-on-month shows that the manufacturing and services sector has been impacted from the attacks in Paris.
Weaker increase in demand was noted in November, with many service providers noting a major decline following the attacks.
Many companies are noting that there’s been a drop in confidence and industry following the tax, and a senior economist noted that long-term impacts are still uncertain for the country. France has struggled, but the euro zone as a whole has had its strongest month since 2011 despite the attacks.
After slowing down in Q3, the Flash Euro Zone PMI Composite Output Index rose from 53.9 to 54.4 in November, showing that the euro zone has picked up momentum in Q4. Analysts still believe that the ECB will take measures to boost the economy in December despite notable growth in November.