France: Composite PMI falls to four-month low in December
December 16, 2015
The composite Purchasing Managers’ Index (PMI), elaborated by Markit, moderated in December. The indicator fell from a revised 51.0 (previously reported: 51.3) to 50.3 in December. The print represented a four-month low. Nevertheless, it marked the 11th consecutive month in which the indicator hovered above the 50-threshold that separates expansion from contraction in business activity.
December’s result reflected a deterioration in the service sector, which more than offset an improvement in the manufacturing sector. According to the survey, growth marked an 11-month low in the service sector, while manufacturing rose to its highest value in almost two years.
Markit commented, “French private sector output growth nearly ground to a halt at the end of 2015 amid faltering new business intakes. A slowdown in the dominant service sector was the driver, with some panelists indicating that their new business intakes had been impacted following the recent terrorist attacks. [...] PMI data for the fourth quarter as a whole suggest that GDP growth is likely to have remained at a similar moderate pace to the 0.3% rise seen in the previous quarter.”
Author: Eric Denis , Economist