Employment growth in French service sector hits near 16-and-a-half year high
Staff Writer |
Service sector conditions in France continued to improve midway through the final quarter of the year.
Article continues below
Indeed, business activity growth hit a six-and-a-half year high, buoyed by a further marked rise in new orders.
In turn, this contributed to the sharpest round of job creation since July 2001.
Backlogs of work continued to accumulate nonetheless, while business confidence remained firmly in positive territory.
On the price front, input cost inflation hit a six-year peak, which contributed to a third successive uptick in average charges.
The headline seasonally adjusted Business Activity Index posted 60.4 in November.
Up from 57.3 in October, the latest index reading pointed to the sharpest expansion in service sector output since May 2011.
Robust client demand and strong economic conditions were cited as key factors supporting the expansion.
The final seasonally adjusted IHS Markit France Composite Output Index – which covers the combined manufacturing and service sectors – posted 60.3 in November, up from 57.4 in October and a six-and-a-half year high.
Service sector output growth was underpinned by a strong demand environment.
Indeed, the rate of expansion in new orders was the most marked in six-and-a-half years.
Moreover, the increase extended the current period of growth to 21 months.
Following a similar trend, new business rose to the greatest extent in just shy of seven years in the manufacturing sector.
IHS Markit France Composite PMI Sources: IHS Markit, INSEE Buoyed by strong client demand, service providers hired additional workers for the eleventh time in as many months during November.
Moreover, the rate of job creation was the most marked in almost 16-and-a-half years.
As was the case with activity, the sharpest increase was evident at Hotels & Restaurants.
Manufacturers also took on additional employees at a marked pace in November.
Indeed, the rate of jobs growth was only fractionally shy of July’s near 17-year high.
The amount of unfinished work at French service sector companies rose for the twenty-first successive month in November.
Moreover, the rate of accumulation was the most marked since May as rising client demand outweighed improvements to operating capacity.
Meanwhile, input price inflation at services firms intensified to a six-year high and extended the current period of inflation to almost eight years.
Panellists generally cited higher wage bills as the main factor behind the latest rise.
By sector, input costs rose to the greatest extent at Transport & Storage companies. ■