|Composite - Level||50.0||50.1||49.6|
|Services - Level||50.3||50.5||49.9|
Overall private sector activity expanded at just a marginally faster rate than originally reported in July. At 50.1, the key composite output index was only a tick higher than its flash reading but at least 0.5 points above its final June posting and back on the right side of the 50 growth threshold.
The positive revision reflected a slightly stronger service sector for which the flash PMI was adjusted 0.2 points firmer at 50.5. The modest upturn here was underpinned by a fifth consecutive advance in new orders matched by another increase in backlogs. In turn, improving business conditions prompted a small increase in headcount following a marginal decline in the previous month but business expectations for the year ahead still dipped and remained comfortably below their long-run average.
Meantime, inflation developments continued soft. Although input costs rose, the rate of cost inflation declined to a 5-month low and, more importantly, service provider charges extended their long-term downward trend.
The service sector had a sluggish start to the new quarter and with manufacturing (48.6) still contracting, real GDP probably stagnated. Combined with persistently weak prices, the lack of economic momentum suggests that the French economy would more than welcome another monetary ease from the ECB.
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.
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