French economic output fell last month amid political uncertainty caused by the decision to hold early parliamentary elections in July.
A monthly index of private sector activity in France fell to 48.8 in June from 48.9 in May, below the 50 mark that separates growth from contraction. A French purchasing managers’ survey showed business confidence also fell to a five-month low, with some firms citing “uncertainty surrounding the general election in July.”
President Macron called snap parliamentary elections for June 10 after his ruling centrist party suffered a heavy defeat in a vote to elect members of the European Parliament. French stocks, government bonds and the euro were sold off last month after the announcement. The far-right National Rally party is likely to take power in the vote.