|Composite - Level||51.4||51.9||50.2|
|Services - Level||51.2||51.9||50.6|
French private sector economic activity was somewhat stronger than originally thought in September. At 51.9, a 3-month high, the final composite output index was up 0.5 points versus its flash estimate and 1.7 points above its final August reading.
The upward revision stemmed mainly from a stronger revised service sector where the final PMI weighed in at also 51.9, some 0.7 points higher than its preliminary value and 1.3 points better off than in mid-quarter. The acceleration in service sector activity was mainly due to a larger increase in new orders which more than offset a slowdown in backlog growth as well as the second drop in employment in the last three months. Service providers remained generally optimistic but business expectations for the year ahead still declined from August's 41-month high to their lowest point since December 2014.
Inflation news was again negative with output prices declining for a forty-second successive month, albeit at the slowest pace since April 2012.
Following stagnation in the second quarter, the PMI data point to just a modest rise 0.2 percent in total output in the period just ended. The pick-up in new orders is promising but in general the outlook for the fourth quarter is sluggish and inadequate economic growth.
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.