French architecture in France

France PMI December 2020

France: Decline in private sector activity softens in December

The seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) rose to 49.6 in December from November’s 40.6, which had marked a six-month low. Consequently, the index remained—although moving closer to—the 50-threshold that separates contraction from expansion in business conditions.

December’s reading largely reflected a softer decline in output among services sector firms, while production in the manufacturing sector logged an expansion. Moreover, new orders rose for the first time in four months in December, hinting at improving demand conditions, particularly in the services sector. As a result, firms raised employment levels in December, marking the first rise in employment levels since before lockdown measures to control the pandemic were implemented back in March. On the price front, input cost inflation accelerated to a four-month high amid raw materials shortages. Meanwhile, French firms continued to cut output charges, albeit at a softer pace than in the previous month. Lastly, businesses’ turned notably more optimistic in December, with confidence reaching the highest level in nearly a year as firms believed demand would pick up when Covid-19 vaccines would become available.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest