France Faces 'Colossal' Hit Even as Economic Slump Eases

French economic activity shrank at a slower pace in May, though it’s still facing a huge slump this quarter, according to IHS Markit.

Its latest monthly report showed prospects for a meaningful pickup remain well out of reach. A measure of services and manufacturing rose to 30.5 from 11.1 in April, it said Thursday. But that still signals contraction, and businesses remain pessimistic about the next 12 months.

The report showed exports orders fell for a fifth month and companies continued to pare back staff numbers. Markit said France is facing a “colossal reduction” in economic activity this quarter.

“The data highlights the difficulties economies may face in the recovery from this crisis, as firms continue to lay-off workers amid a persistently uncertain outlook,” said Eliot Kerr, an economist at Markit.