Slight rebound in growth in the French private sector in September, thanks to services

Slight brightening for the French economy…

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( — Slight brightening for the French economy. Flash PMI data shows a slight acceleration in growth in the private sector at the end of the third quarter. Overall activity, however, rose only slightly, with the marginal rise seen in September being entirely driven by the performance of the services sector. Having recovered from 50.4 in August (seventeen-month low) to 51.2, the composite Flash PMI index of global activity thus signals a slight rebound in growth in the French private sector and emerges above market expectations (49.9).

In detail, the Flash services activity index came out at 53 in September (against 51.2 in August and 50.5 consensus), at a 2-month high, while the Flash PMI manufacturing industry fell from 50.6 to 47.8 in September (49.8 consensus), on a low of 28 months.

Joe Hayes, Senior Economist at S&P Global Market Intelligence comments on the latest figures from the PMI survey: “Despite an upturn in the composite PMI of activity, the overall analysis of the latest survey data highlights a fragility of the French economic situation in September. The weakness is particularly visible in the manufacturing sector, where the contraction accelerated during the month, the accumulation of inventories of finished products, the rapid deterioration of demand, the growing economic uncertainty and very high inflationary pressures which led to a drop in output.Another headwind highlighted by the latest PMI data, inflationary pressures have increased despite further signs of easing supply tensions, a trend that companies surveyed frequently attribute to the rising cost of energy and wages. We are concerned about energy security as we approach the winter period in Europe”.


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