According to survey data released by S&P Global on Monday, France's manufacturing activity contracted in May for the first time since last November. This decline was driven by surging energy prices and logistical disruptions stemming from the conflict in the Middle East.

The final reading for France's Manufacturing Purchasing Managers' Index (PMI) for May came in at 49.7. This figure is lower than April's reading of 52.8 but higher than the preliminary May estimate of 48.9.

The PMI index uses 50 as the threshold between expansion and contraction. A reading below 50 indicates a contraction in sector activity, while a reading above 50 signifies expansion.

The drop to 49.7 in May marks the lowest level for the index since November of last year and represents the first time it has fallen below the 50-point threshold since that month.

Joe Hayes, Chief Economist at S&P Global Market Intelligence, commented, "Geopolitical tensions in the Middle East have driven up energy prices, and supply chains are still adjusting to this shock."

He added, "Compared to April, a greater number of French manufacturers reported delays in deliveries and increased costs for raw materials. In the coming months, these pressures are likely to gradually permeate the broader economy, potentially pushing up goods prices and creating widespread supply challenges."