Output growth in France accelerates to six-year high
Staff Writer |
May’s flash France PMI data pointed to an eleventh consecutive month of private sector growth in France.
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The IHS Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, registered 57.6, compared to April’s reading of 56.6.
The latest figure signalled the sharpest rate of growth in six years.
The service sector saw activity increase for the eleventh time in as many months.
Moreover, the rate of expansion accelerated to a six-year high and was sharp overall.
Manufacturing output also continued to rise markedly, albeit to a fractionally weaker extent than in April.
Following a similar trend to output, May data signalled an eleventh consecutive monthly rise in new business.
The rate of expansion eased from the previous month but remained sharp.
An increase in new orders was evident at both manufacturers and services providers for the eighth and fifteenth months respectively.
However, rates of growth eased in each instance.
Bolstered by strong client demand, French private sector firms raised their staffing numbers in May, thereby continuing a trend that has been evident since November last year.
Furthermore, the rate of job creation quickened to a 69-month high.
Levels of employment rose in both the manufacturing and service sectors, with the sharper rate of increase evident in the latter.
The amount of outstanding business at companies operating in the French private sector rose in May, thereby continuing a trend that has been observed since March 2016.
Moreover, the rate of growth was the sharpest in six years.
Capacity pressures were evident at both manufacturing and services companies.
In line with a sharper rise in client demand, the rate of backlog accumulation remained more severe in the service sector.
Input prices faced by French private sector companies increased for the fifteenth successive month in May.
The rate of inflation eased from April’s 70-month high but remained sharp.
Price pressures weakened at both goods producers and service providers, but continued to be felt most strongly by the former.
May data pointed to a second successive rise in average selling prices as firms looked to pass on rising cost burdens to their clients.
Charge inflation was evident in both the manufacturing and service sectors.
Notable, output prices rose for the first time since March 2012 in the service sector.
Finally, private sector companies maintained a positive outlook towards output growth over the coming 12-month period.
Rising fractionally from April, the degree of positive sentiment remained marked overall.
Some of those firms expecting output to increase commented on the introduction of new products, strong external demand and the end of the presidential elections. ■