Private sector growth in France slows but remains marked in February
Staff Writer |
Private sector growth remained elevated in February according to latest data.
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That said, at 57.8 down from 59.6 last month, the IHS Markit Flash France Composite Output Index signalled the slowest rate of expansion since October last year.
Rates of output growth softened in the manufacturing and services sectors.
Moreover, the pace of expansion at manufacturers dipped below their service sector counterparts for the first time since November.
Nevertheless, growth remained marked in each case.
The increase in output was supported by a twentieth consecutive rise in new orders.
In line with the trend for output, the rate of increase was the weakest in four months amid softer expansions at both manufacturers and service providers.
Rates of growth were marked nonetheless.
Buoyed by strong client demand, private sector firms in France continued to take on additional workers during February.
Contrary to the trend for output and new orders, the rate of employment growth quickened from the previous month, and was only just shy of November’s 16-and-a-half year high.
The acceleration was driven by service providers, which hired new staff at the secondsharpest pace since mid-2001.
Meanwhile, a slight moderation in job creation was recorded in the manufacturing sector.
Unfinished work continued to accumulated in spite of the sharp improvement in operating capacity.
The rate of backlog accumulation eased slightly from January but remained among the most marked since 2010.
The slowdown was felt most strongly at manufacturers, which saw the rate of growth in outstanding work hit a 6-month low.
A comparatively weak moderation was recorded at service providers.
Input prices continued to increase in February, extending the current period of inflation to two years amid reports of higher raw material costs including nickel, paper, steel, aluminium and iron.
Moreover, the rate of increase remained marked despite a slight moderation from January’s 79-month high.
Inflation softened but remained marked at both manufacturers and service providers.
In line with the trend for input costs, average selling prices increased during February, thereby continuing a trend that has been evident since September last year.
Similarly, the rate of charge inflation eased slightly from January amid softer rises in both the manufacturing and services sectors.
The rate of increase in the former remained notably sharper than the latter.
Finally, business confidence at private sector firms remained elevated in February; indeed the degree of positive sentiment was the most marked in nine months.
The improvement was broad-based across both the manufacturing and services sectors, with the latter again the most optimistic. ■