France: Composite PMI increases to nearly four-year high in June
June 23, 2015
The composite Purchasing Managers’ Index (PMI) elaborated by Markit increased in June, inching up from 52.0 in May to 53.4, which marked the highest value since August 2011. As a result, the composite PMI is further above the 50-threshold that separates expansion from contraction in business activity, signaling expansion for the fifth consecutive month.
The result came on the back of stronger growth in service sector activity compared to the previous month. In addition, manufacturing activity improved and marked the end of a 12-month period of decline. Markit reported that new business growth increased for the seventh consecutive month. Moreover, business expectations in the service sector reached a 39-month high in June. Meanwhile, employment rose for the fourth consecutive month.
Markit concluded that, “the French economy gained further growth momentum in June, driven by a stronger service sector performance and a stabilisation in manufacturing. The figures bode well for second quarter GDP, following the 0.6% expansion recorded in the opening quarter of the year. With service sector business expectations standing at the highest level for over three years, it seems firms are becoming increasingly optimistic of a convincing upturn in activity.”
Author: Eric Denis , Economist