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Monday, June 21, 2021

France April flash services PMI 50.4 vs 46.7 expected

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Latest data released by Markit – 23 April 2021

  • Prior 48.2
  • Manufacturing PMI 59.2 vs 59.0 expected
  • Prior 59.3
  • Composite PMI 51.7 vs 49.4 expected
  • Prior 50.0

The headline reading comes in at a eight-month high as business activity returned to growth for the first time since August last year. This is a welcome beat for the French economy amid continued worries surrounding the virus situation and tighter restrictions.

That said, the expansion in the services sector was marginal if anything else.

But at least the good news is that demand conditions are seen improving with new business climbing for a second month running and at its quickest pace since July 2020.

Markit notes that:

“Latest PMI data pointed to the first increase in
private sector activity since the end of the initial
COVID-19 rebound last summer. The result was a
continuation of the improved trend seen in recent
months, but previously growth had remained elusive
due to an ongoing decline in the service sector.
However, with an expansion in services activity and
another strong rise in manufacturing production
during April, the French private sector finally
managed to achieve growth.

“Furthermore, with positive signs on the demand
front and capacity pressures intensifying in both subsectors, the short-term outlook is continuing to
strengthen for French businesses. Beyond the next
few months, panel members are also confident of
further upward momentum in demand and that was
reflected by the strongest expectations towards the
12-month business outlook for over three years.”



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