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France: Composite PMI inches up in May

May 22, 2015

The composite Purchasing Managers’ Index (PMI) elaborated by Markit increased slightly in May, inching up from 50.6 to 51.0. As a result, the composite PMI is further above the 50-threshold that separates expansion from contraction in business activity, signaling expansion for the fourth consecutive month.

The result came on the back of stronger growth in service sector activity than in the previous month, which more than offset a decrease in manufacturing activity. Markit reported that new business growth increased for the sixth consecutive month, but remained moderate. Moreover, while new export orders in the manufacturing sector rose for the first time in over a year, domestic demand fell. Meanwhile, employment rose for the third consecutive month, reaching the highest growth rate since December 2011.

Markit concluded that, “the French private sector posted further modest output growth in May, suggesting that economic expansion is being maintained through the second quarter. The service sector remained the driver of growth, offsetting another contraction in manufacturing.”

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 May 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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