France: Composite PMI rebounds in July, does not exit contraction territory
July 24, 2014
The composite Markit Purchasing Managers’ Index (PMI) edged up from 48.1 in June to 49.4 in July, which marked the highest level in three months. Following July’s improvement, the PMI approached to the 50-threshold that separates expansion from contraction in business conditions, although it is still in contraction territory.
According to Markit, despite the fact that July’s PMI was above June’s result, it continued to signal that the private sector remained in contraction at the start of the third quarter of the year. The increase seen in the composite PMI—a weighted average of the Manufacturing PMI and the Services PMI—was mainly driven by an improvement in the services sector, whereas manufacturing deteriorated sharply.