France: Private-sector activity growth inches down in September
The IHS Markit Flash Composite Output Index (PMI) edged down to 51.3 from 52.9 in August, which had marked a nine-month high. Nevertheless, the index remained above the 50-threshold that separates expansion from contraction in business conditions.
September’s deterioration was broad-based. The service sector continued to led overall output growth, although firms reported the slowest expansion in activity since May and a downturn in international sales. On the other hand, activity in the manufacturing sector returned to contractionary territory in September amid falling new orders. Meanwhile, overall business turned slightly more optimistic in September.
Commenting on September’s result, Eliot Kerr, Economist at IHS Markit said:
“The disparity between France’s manufacturing and service sectors persisted in September, as service providers continued to record activity expansion, while there was a renewed contraction in manufacturing output. […] “However, with services firms registering their slowest rise in activity since May, fears of negative spill over effects from the manufacturing sector are coming to fruition.”