France: Composite PMI rises to four-month high in October
October 23, 2015
The composite Purchasing Managers’ Index (PMI) elaborated by Markit improved notably in October. The indicator rose from a revised 51.9 (previously reported: 51.4) to 52.3 in October. The print represented the highest since June and marked the ninth consecutive month in which the indicator hovered above the 50-threshold that separates expansion from contraction in business activity.
October’s result reflected improvements in both the manufacturing and service sectors. According to the survey, output in the manufacturing sector increased at the fastest pace in 19 months while growth in business activity in the service sector continued to rise steadily, reaching a four-month high in October. Moreover, new business in October improved for the second time: new work continued to rise in services and new orders rose to the highest point in 18 months in manufacturing.
Markit stated that the result seen in October, “points to modest growth momentum at the start of the final quarter, following a likely small rise in GDP during Q3.” Markit concluded, however, that, “companies continue to trim staffing levels in the latest month, pointing toward ongoing softness in the labor market.”
Author: Eric Denis , Economist