France’s S&P Global Flash France Composite Output Index fell to 48.8 in August from 49.4 in July, marking a two-month low and signaling contraction. Services drove the decline, with the Services PMI Business Activity Index dropping to 48.4 from 49.6, as some companies cited extreme heat for weaker activity and demand. Manufacturing improved, with the Manufacturing Output Index rising to 50.7 and the Flash France Manufacturing PMI reaching 51.5, both four-month highs; production increased for the first time since April. New orders fell for a ninth consecutive month, export business weakened at a faster pace and backlogs declined at their quickest rate in 18 months. Employment fell for a fourth month, while input-price inflation slowed to a five-month low but remained above pre-war levels. Business confidence also weakened amid international and domestic political uncertainty.