France: Flash Composite PMI builds on gains and reaches highest print in over five-and-a-half years
January 25, 2017
The Markit Flash Composite Purchasing Managers’ Index (PMI) jumped from a revised 53.1 (previously reported: 52.8) in December to 53.8 in January, overshooting market analysts’ expectations of a 53.3 increase. The increase, which marks the highest reading since June 2011, takes the indicator further above the 50-threshold that separates expansion from contraction.
January’s print reflects an expansion in the services and manufacturing sectors. Services grew at the fastest pace in over one year and manufacturing expanded at a robust pace, though decelerated slightly from December’s multi-year high. New business increased in both sectors and firms in both increased staffing to accommodate higher client demand. This reflected wider labor market developments too, with employment logging the strongest growth rate since December 2011. Concerning price developments, input costs rose in both sectors while output prices rose in the manufacturing sector but dropped in the services sector.