December’s flash France PMI data indicated private sector output rose at a sharper pace.
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Stronger growth was registered in both the manufacturing and service sectors, with the rate of expansion the most marked in the former.
The Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, registered 52.8, compared to November’s reading of 51.4. The latest reading pointed to a solid rate of growth that was the best in a year-and-a-half.
Underpinning the expansion was a further rise in service sector activity, the sixth in as many months. Moreover, the rate of increase was the most marked since September. Meanwhile, manufacturing output rose for the fourth successive month.
Furthermore, the latest rate of growth was the sharpest in 67 months. New business received by French private sector companies increased in December, thereby continuing a trend that has been evident since July. The rate of growth was the sharpest for 18 months and marked overall. A rise in the level of new work was recorded at service providers and goodproducers for the tenth and third month respectively.
Employment across the French private sector increased for a second successive month in December. That said the rate of job creation was marginal and unchanged from the previous month. Whereas manufacturing companies recorded the steepest rise in staffing numbers in five-and-a-half years, while they were broadly unchanged in the service sector.
Outstanding business at French private sector firms continued to increase in December, thereby extending the current sequence of expansion to ten months. Furthermore, capacity pressures were signalled in both the manufacturing and service sectors.
Private sector companies in France were faced with a further rise in input costs during December. Moreover, the latest rate of inflation was the most marked since March 2012. Higher input prices were evident in both sectors, with by far the sharpest increase recorded in the manufacturing sector (fiveand-a-half year high).
Meanwhile, output prices fell for the fifty-sixth month in a row, albeit at a fractional pace. Falling average charges in the service sector were to some extent offset by modest inflation in the manufacturing sector.
Finally, service sector business expectations remained positive in December. Moreover, the degree of optimism was the most marked since March 2012. Confident panellists commented on the launch of new products and positive sales forecasts. ■