France: Composite PMI rises in August, points to stabilization
August 21, 2014
The composite Markit Purchasing Managers’ Index (PMI) climbed from 49.4 in July to 50.0 in August. The reading marked the highest level in four months. As a result, the PMI touched the 50-threshold that separates expansion from contraction in business conditions, signaling stabilization in the private sector’s output growth.
According to Markit, August’s result ended three months of contraction, but, “divergent trends remained apparent at the sector level.” Accordingly, the increase in the composite PMI—a weighted average of the Manufacturing PMI and the Services PMI— was driven by a further improvement in services, while the manufacturing sector deteriorated over the previous month. Markit concluded that, “modest expansion in France’s dominant service sector masked ongoing weakness in manufacturing during August.”
Author: Ricardo Aceves, Senior Economist