France: Composite PMI falls in February
February 22, 2016
The composite Purchasing Managers’ Index (PMI), elaborated by Markit, fell in February. The indicator inched down from a revised 50.2 (previously reported: 50.5) to 49.8 in February. As a consequence, the indicator fell below the 50-threshold that separates expansion from contraction for the first time in over a year.
February’s result reflected minor deteriorations in private sector output, in both manufacturing and service sectors. According to the survey, new business in February fell for the first time in six months. However, employment rose for a second consecutive month.
Markit noted that, “the private sector economy continues to follow a broadly stagnant path, with first-quarter GDP looking likely to remain sluggish following a 0.2% rise at the end of 2015. The combination of weak demand conditions and strong competitive pressures saw firms’ output prices cut at the sharpest rate in over a year, pointing to continued downward pressure on inflation. On a brighter note, service providers reported improved confidence regarding future activity, with optimism climbing to a six-month high.”
Author: Eric Denis , Economist