January flash data point to further strong growth in the French private sector economy.
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At 59.7, the IHS Markit Flash France Composite Output Index signalled a rate of expansion that was broadly unchanged from the prior survey period and only just shy of November’s six-and-a-half year peak (60.3).
Encouragingly, the expansion was broad-based across both the manufacturing and services sectors.
A fractional pick-up in the rate of increase at service providers was partially offset by a slight moderation at their manufacturing counterparts.
The rates of growth remained historically marked in each case nonetheless.
As has been the case in recent months, output was supported by a further rise in new orders.
Indeed, the rate of new order growth in January was the most marked since April 2011.
The acceleration was driven by the services sector, which saw the sharpest rise in over six-and-a-half years.
In contrast, the rate of expansion at manufacturers eased slightly from December, but remained marked overall.
Strong client demand continued to buoy employment numbers, which rose for the fifteenth time in as many months in January.
Although slowing for the second month in succession, the rate of job creation remained markedly greater than the long-run series average.
The slowdown was driven by a slight moderation at manufacturers, while the rate of hiring at service providers was unchanged.
Despite the rise in staffing numbers, private sector firms recorded the sharpest rise in unfinished work since April 2011.
Moreover, the latest increase extended the current period of backlog accumulation to 23 months.
The acceleration was underpinned by a sharper rise at service providers.
Meanwhile, manufacturers reported a fractional moderation from the previous month.
According to latest data, input price pressures faced by French private sector companies intensified during January.
Indeed, the rate of inflation quickened to an 80-month high and moved above the long-run series average.
Higher prices were generally attributed to a rise in raw material costs (including oil, steel, copper and aluminium) and greater wage bills.
Inflation accelerated substantially at both manufacturers and service providers, hitting nine-and 80-month highs respectively.
In line with the trend for input costs, average selling prices rose at a sharper pace during January.
Indeed, the rate of charge inflation was the most marked since August 2011 as some firms passed on higher cost burdens to their clients.
The acceleration was broad-based across the manufacturing and services sectors, with the sharper increase evident in the former.
Finally, business confidence at French private sector firms remained elevated during the latest survey period, despite a fractional pull-back from December.
The degree of positive sentiment remained broadly similar at both manufacturers and service providers. ■