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.”
Author: Eric Denis , Economist