French private sector output rises fastest in 10 months
Staff Writer |
The latest flash France PMI data indicated that private sector output increased at the sharpest rate in ten months during August.
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The Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, posted 51.6, up from 50.1 in July, to signal a moderate pace of expansion. Service providers reported a second successive monthly rise in business activity during August.
Moreover, the rate of growth was the fastest since October 2015. In the manufacturing sector, output was stable following a four-month period of contraction. New business across the French private sector increased for the second month running during August.
That said, the rate of growth remained marginal overall and was slightly weaker than in July.
Expansion was centred on the service sector, where new work intakes rose for a sixth consecutive month. In contrast, manufacturers’ new order books fell for the eighth month in a row, with the rate of decline quickening since July (partly reflecting a return to contraction of new export orders).
Employment at French private sector companies decreased in August, having risen slightly in the preceding month. However, the rate of job shedding was modest overall. Manufacturers reported a steeper drop in staffing levels than service providers.
Backlogs of work in the French private sector rose for the sixth month running during August. The rate of growth quickened to the fastest since May, although remained modest overall. Higher outstanding business was recorded across both the services and manufacturing sectors.
Input prices facing French private sector companies decreased slightly in August. It was the first reduction since January 2015, albeit marginal overall. Lower input costs were centred on the service sector as manufacturers noted a further modest rise.
August data signalled a further drop in output prices in the French private sector. The rate of decline in charges accelerated since July to the sharpest in four months. Both service providers and manufacturers signalled faster reductions in output prices during the latest survey period.
Finally, French service providers’ business expectations dipped to an eight-month low in August. Some panellists commented on an uncertain economic outlook. However, others mentioned promising pipelines of work. ■