PARIS, January 2 - France's manufacturing sector experienced its most significant contraction in over four years, as indicated by a monthly survey released on Thursday. The S&P Global HCOB final purchasing managers index (PMI) for December dropped to 41.9, down from 43.1 in November, marking the lowest reading since May 2020. A PMI below 50 signifies a decline in activity, while readings above that threshold indicate growth.
Economist Tariq Kamal Chaudhry from Hamburg Commercial Bank remarked on the deepening industrial crisis, stating that the PMI continues to send negative signals. The outlook for the French economy remains bleak, with surveyed companies expressing little optimism for the upcoming year.
Political instability, including the collapse of Prime Minister Michel Barnier's government over budget opposition, has further compounded the economic challenges.
NEW DELHI, January 2 - In India, several major banks have approached the Reserve Bank of India (RBI) requesting the implementation of liquidity support through foreign-exchange swaps. This request comes as short-term currency financing costs have surged to their highest levels in four years. The informal discussions suggest that FX swaps could provide a means to inject rupee liquidity into the financial markets, addressing the current financial strain.