France PMI January 2016


France: Composite PMI inches up in January

January 22, 2016

The composite Purchasing Managers’ Index (PMI), elaborated by Markit, increased in January. The indicator inched up from a revised 50.1 (previously reported: 50.3) to 50.5 in January. The indicator has now been above the 50-threshold that separates expansion from contraction in business activity for a year.

January’s result reflected minor improvements in private sector output, in particular the service sector, which returned to expansion. However, manufacturers’ output stagnated, ending four consecutive months of expansion. According to the survey, new business and employment increased marginally in January.

Markit noted that, “January’s French PMI figures signalled an uneventful start to the year, with the private sector economy eking out marginal activity growth, shrugging off the recent volatility in financial markets. Competitive pressures remain strong, with firms cutting their selling prices at the sharpest rate in seven months in a bid to shore up demand, suggesting that inflation is set to remain very weak in the near future.”

FocusEconomics Consensus Forecast panelists see fixed investment growing 1.7% in 2016, which is unchanged over the previous month’s estimate. For 2017, the panel sees investment expanding 2.0%.

Author:, Economist

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France PMI Chart

France PMI January 2016

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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