France PMI November 2016


France: Flash Composite PMI points to expansion in November

November 23, 2016

The Markit Flash Composite Purchasing Managers’ Index (PMI) rose from a revised 51.6 (previously reported: 52.7) in October to 52.3 in November, overshooting market analysts’ expectations of a softer 51.8 increase. The increase takes the indicator further above the 50-threshold that separates expansion from contraction.

November’s print reflected opposing trends in the French private sector. Output growth in the services sector accelerated and offset softer growth in manufacturing. New business increased in service and manufacturing, with the former accelerating to a 17-month high while the latter grew at a marginal rate. Staffing rose in both manufacturing and services and the expansion in job creation reached the sharpest increase since June 2015. Business expectations in the private sector remained optimistic, though they eased to the lowest level this year. Regarding price developments, input costs rose at the sharpest rate in over four-and-a-half-years and output prices fell owing to greater competitive pressures.

IHS Markit noted that, “the latest figures point to a further solid rate of growth in the French private sector […] driven by another marked rise in service sector activity”

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.6% in 2016, which is up 0.2 percentage points from the previous month’s estimate. For 2017, the panel sees investment expanding 1.9%, which is up 0.1 percentage points from last month’s forecast.

Author: Jean-Philippe Pourcelot, Economist

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France PMI Chart

France PMI November 2016 0

Note: Markit Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Markit.

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