Output growth accelerates to 15-month high in France
Staff Writer |
The latest flash France PMI data signalled that private sector output rose at the strongest rate in 15 months during September.
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The Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies,registered 53.3, up from 51.9 in the precedin gsurvey period. The latest reading was the joint highest since August 2011.[break]
Driving the pick-up in growth was a fasterexpansion of service sector activity, which increased at the sharpest rate since June 2015. Manufacturing output on the other hand remained unchanged since August. New business received by French private sectorfirms increased for a third successive month in September.
The rate of growth was solid, having accelerated to a 15-month high. Whereas service providers reported a faster rise in new business, manufacturers noted a further decline (albeit theslowest in the current nine-month period ofcontraction). Manufacturers’ new export orders fellfor the second month running, albeit marginally.
Employment across the French private sector rosefor the second time in the past three months duringSeptember. That said, the rate of job creation wasmarginal overall. Staffing levels increased in theservice sector, but were cut further bymanufacturers. Outstanding business in the French private sectorrose for a seventh consecutive month inSeptember.
Moreover, the rate of growth quickened to a 15-month high. Faster increases in backlogswere signalled by both service providers and manufacturers, with the former noting the sharper increase. Input prices facing French private sector companies continued to rise in September.
The rate of cost inflation accelerated to a four-month high,although remained modest overall. Similar rates ofinput price inflation were recorded in the servicesand manufacturing sectors.
However, output prices fell further, with panellistsciting strong competitive pressures. Althoughmodest, the latest drop in charges was the weakestin a year.
French service providers’ business expectations improved marginally in September, although remained subdued compared with the survey’shistorical average. Hopes of improving economic conditions, new product launches and company investment plans were among the reasons cited by panellists as supporting optimism. ■