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[French December PMI Preliminary Readings: Manufacturing and Services Show Divergent Performance] ⑴ The preliminary reading of the French services PMI for December was 50.2, lower than the expected 51.1 and the previous reading of 51.4. ⑵ The preliminary reading of the manufacturing PMI was 50.6, higher than the expected 48.1 and the previous reading of 47.8. ⑶ The preliminary reading of the composite PMI was 50.1, lower than the expected 50.3 and the previous reading of 50.4. ⑷ The data shows a divergence: the French services sector performed weakly in December, while manufacturing activity exceeded expectations. ⑸ Overall, this still exerts some drag on the French economy, resulting in a near standstill in overall economic activity in the last month of the year. ⑹ In detail, employment remained stable, and price changes were not significantly different from November. ⑺ The HCOB pointed out that private sector business activity in France was essentially stagnant in December. ⑻ Although the preliminary PMI reading was still slightly above the 50-point mark, the expansion rate slowed compared to the previous month, reflecting that the economy was still dragged down by uncertainty among households and businesses. (9) The manufacturing PMI rose slightly above 50.0 at the end of the year, with both output and new orders indices showing positive signs, supported significantly by overseas demand. (10) Businesses are optimistic about future output and have re-emerged a willingness to expand hiring, providing a positive signal for the outlook. (11) However, as long as the government budget is not passed, political uncertainty will continue to pose a significant headwind to the French economy. (12) Although the recent strong performance of the aviation industry may provide broader momentum to the manufacturing sector, weak consumer confidence and intense international competition continue to constrain growth prospects.