France PMI


France: Composite PMI in August drops to four-month low, remains in expansionary territory

August 24, 2015

The composite Purchasing Managers’ Index (PMI) elaborated by Markit, decreased in August, falling from 51.5 in July to 51.3, which marked the lowest value in four months. However, the composite PMI remains above the 50-threshold that separates expansion from contraction in business activity, signaling expansion for the seventh consecutive month.

The result came on the back of weaker growth in the service sector, compared to the previous month, which reported the softest expansion since April. In addition, manufacturing activity dropped in August for the second consecutive month. However, Markit reported that new business growth increased for the ninth consecutive month. Meanwhile, employment recorded its second consecutive month of reduction.

Markit concluded that, “output growth in France’s private sector economy cooled to a four-month low in August, suggesting that third-quarter GDP may disappoint again following stagnation in Q2. An improvement in service providers’ business expectations to a near three-and-a-half year high provided some rare positive news, but manufacturing continued to struggle amid a sharper drop in new orders.”

FocusEconomics Consensus Forecast panelists see fixed investment contracting 0.4% in 2015, which is down 0.1 percentage points from the previous month’s estimate. For 2016, the panel expects fixed investment to rebound and expand 2.2%.

Author:, Economist

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France PMI Chart

France PMI August 2015

Note: Markit Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Markit.

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