France: Private sector activity increases at quickest pace in ten months in May
The seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) jumped to 57.0 in May from April’s 51.6, marking the best reading since July 2020. As such, the index moved further above the 50-threshold that separates expansion from contraction in business conditions, pointing to an improvement in French private sector activity.
May’s upturn was chiefly driven by a pickup in business activity growth, both in the manufacturing and services sectors. Moreover, new business rose at a fastest clip since January 2018 in May amid sturdier demand, while employment rose for the fifth month running—albeit at a slower pace than in the prior month. On the price front, although input cost pressures eased from April, inflation remained elevated amid supply shortages and rising demand. Meanwhile, output charge inflation rose to the highest level since August 2011. Lastly, confidence regarding the 12-month outlook was the strongest since the series began in 2012.