France: PMI declines again in September, but remains in expansionary terrain
The IHS Markit Flash Purchasing Managers’ Index (PMI) fell to 55.1 in September from 55.9 in August, logging the lowest reading since April and pointing to waning momentum in private sector activity. That said, the index remained well above the 50-threshold, thus still signaling an improvement in business conditions from the previous month.
September’s print largely reflected decelerating output growth in both the manufacturing and services sectors, with the former recording stronger losses, due to ongoing shortages of raw materials globally. This, coupled with persistent logistical disruptions in Europe and Asia, resulted in a spike in average lead times. Against this backdrop, input cost inflation rose at an over 10-year high, prompting a marked increase in selling prices and hampering client demand in turn. On a brighter note, firms raised their headcounts at the quickest pace in nearly three years and grew more confident in their expectations of economic growth globally.