France PMI August 2022


France: Composite PMI dips into contractionary territory in August

August 23, 2022

The S&P Global Flash Purchasing Managers’ Index (PMI) fell to 49.8 in August from 50.6 in July, marking the lowest reading since February 2021. As such, the index moved below the 50-threshold, signaling a milder improvement in business conditions from the previous month.

August’s fall into contractionary territory was due to a continued decline in manufacturing and weaker growth in services. Overall demand once again took a toll on new business and led new orders to tumble for manufacturers. As a result, businesses increased their headcounts at the slowest rate in over a year and reported their lowest levels of optimism in nearly two years.

Conversely, on the price front, a hint of positivity emerged: Input cost inflation moderated further in August, while delivery disruptions improved.

Commenting on the outlook, Joe Hayes, senior economist at S&P Global, commented:

“European economies look set for a challenging run into year-end and France is no exception. High inflation has squeezed purchasing power among consumers and businesses alike, although we saw further signs to suggest we have passed peak price pressures. […] The downward trend in the France PMI may well persist now [that demand for goods and services is falling.”

FocusEconomics Consensus Forecast panelists see fixed investment expanding 1.9% in 2022, which is down 0.2 percentage points from last month’s estimate, and 1.7% in 2023.

Author:, Junior Economist

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France PMI Chart

France PMI August 2022

Note: S&P Global Purchasing Managers’ Index (PMI). Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: S&P Global.

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