|Composite - Level||49.5||49.3||49.7|
|Services - Level||49.5||49.4||50.6|
The final service sector PMI weighed in at 49.4 in January, down just a tick from its flash estimate but still 1.2 points short of its final December reading and, more importantly, on the wrong side of 50. Partly as a result, the key composite output index dropped 0.4 points to 49.3, a couple of ticks weaker than originally thought.
Growth of new business eased slightly but backlogs were up at a faster rate than in December and the pace of job shedding moderated to its slowest rate in the last fifteen months. Business expectations remained positive and, moreover, hit their highest level since March 2014. That said, the latest reading was still well below the survey's long-run average.
Input costs were essentially flat at their year-end level despite the slide in oil prices but service provider charges fell for the thirty-fourth successive month and at their steepest rate since October 2009.
Despite the improvement in January's manufacturing PMI (49.2 after 47.5), both sectors showed renewed signs of contraction at the start of 2015. INSEE's January business report was rather more optimistic but in general the indications are that what economic growth there is remains decidedly sluggish. Meantime, as in most Eurozone member states, deflationary pressures continue to build.
The Composite PMI is produced by Markit and is based on original survey data collected from a representative panel of over 700 companies based in the French private sector economy. The final France Composite PMI follows on from the flash estimate which is released a week earlier and is typically based on at least 75 percent of total PMI survey responses each month.
The Services PMI is produced by Markit and is based on original survey data collected from a representative panel of over 300 companies based in the French service sector. The final France Services PMI follows on from the flash estimate which is released a week earlier and is typically based on at least 75 percent of total PMI survey responses each month.
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
Register for regular updates here and manage your email preferences.