France's economy shows clear signs of deterioration as the ongoing Middle East conflict impacts growth and fuels inflation, according to the latest Bank of France monthly survey. The central bank's polling of 8,500 business leaders reveals a concerning trend across multiple sectors.

Industry and construction activities advanced at a slower pace in April, with expectations pointing to potential decline this month. The services sector faces similar headwinds, reporting stagnation while anticipating contraction in May as geopolitical tensions continue to weigh on economic performance.

The survey data paints a challenging picture for French businesses navigating external shocks. With inflationary pressures mounting and growth momentum fading, companies must adapt to an increasingly uncertain economic environment shaped by events beyond their control.