France’s manufacturing sector unexpectedly slipped back into contraction territory in May, with the HCOB Manufacturing PMI falling to 48.9 from 52.8, well below expectations of 52.1. At the same time, the services sector weakened sharply, as the HCOB Services PMI dropped to 42.9 from 46.5, missing forecasts of 46.6. The data signals a significant deterioration in French business activity and raises concerns over slowing economic momentum in the eurozone’s second-largest economy.