France: Composite PMI reaches seven-month high in May
May 27, 2016
The composite Purchasing Managers’ Index (PMI), elaborated by Markit, rose in May. The indicator jumped from a revised 50.2 (previously reported: 50.5) in April to 51.1 in May, thus marking a seven-month high and the second output increase since January. As a result, the indicator is now further above the 50-threshold that separates expansion from contraction after falling into contractionary territory in February for the first time in over a year.
April’s result reflected higher output in the service sector, which more than compensated for lower manufacturing output. New business grew in May and expanded at the fastest pace since November. Employment increased in the surveyed month as well as did outstanding business. Regarding price developments, input prices rose at the fastest rate in 10 months while output prices fell.
Markit noted that, “PMI data signal that the French private sector economy gained momentum in May. The service sector was the driver, posting its best since last October. However, the manufacturing sector continued to show weakness as output fell for the second month running.”