Business is crushed by French riots

FRENCH business output shrank the first time since 2016 as the ‘yellow vest’ riots hit the economy, a survey shows.

Data group IHS Markit’s study revealed a contraction in private sector activity for the first time in two-and-a-half years, and is likely to trigger fears of a recession if it continues.

Paris has been scarred by the worst riots in more than 50 years over the past month, as furious protesters in yellow vests challenge high taxes. The services sector was worst-hit.

It includes retail, tourism and restaurant companies, many of which were forced to temporarily close, while others struggled to attract customers.

Markit’s index of business activity, where a figure below 50 signals contraction, was 49.3 for France in December, a big fall from 54.2 in November.

Economists had been hoping for a December score of 54.