French business activity at 5 month high
According to a new poll, performance in the French private sector grew in March at the fastest rate in five months following a more resilient recovery than originally expected in services, helping to counterbalance weakness in manufacturing.
Markit, compilers of financial data, said an initial analysis of its composite monthly purchasing managers index rose from 49.3 to 51.1 in February, swaying back into growth territory, represented by a result over 50 points, to reach the highest level since October.
Activity in the dominant service sector rebounded to 51.2 after tumbling to 49.2 last month, outdoing economists' average forecasts for 49.5 as new orders and hiring improved.
Meanwhile, manufacturers saw activity sinking from 50.2 to 49.6, just missing predictions for an unchanged reading of 50.2 as the flow of new orders fell at the fastest pace since August while staffing was its lowest point in 14 months.
Chris Williamson, Chief Economist at Markit, said business activity was still "disappointingly modest" in light of European Central Bank monetary stimulus. He said, "We really need to see that stimulus coming through, boosting business and consumer confidence in the second quarter to get any meaningful growth in France”.
Mr Williamson said that at best French economic growth was 0.2% in the first quarter, half the 0.4% that the INSEE official statistics office forecast last week.
According to a new poll, performance in the French private sector grew in March at the fastest rate in five months following a more resilient recovery than originally expected in services, helping to counterbalance weakness in manufacturing.
Markit, compilers of financial data, said an initial analysis of its composite monthly purchasing managers index rose from 49.3 to 51.1 in February, swaying back into growth territory, represented by a result over 50 points, to reach the highest level since October.
Activity in the dominant service sector rebounded to 51.2 after tumbling to 49.2 last month, outdoing economists' average forecasts for 49.5 as new orders and hiring improved.
Meanwhile, manufacturers saw activity sinking from 50.2 to 49.6, just missing predictions for an unchanged reading of 50.2 as the flow of new orders fell at the fastest pace since August while staffing was its lowest point in 14 months.
Chris Williamson, Chief Economist at Markit, said business activity was still "disappointingly modest" in light of European Central Bank monetary stimulus. He said, "We really need to see that stimulus coming through, boosting business and consumer confidence in the second quarter to get any meaningful growth in France”.
Mr Williamson said that at best French economic growth was 0.2% in the first quarter, half the 0.4% that the INSEE official statistics office forecast last week.
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