French business activity grew at the fastest pace in almost six years in March, although not as fast as initially expected, as price cuts helped boost demand for services, a recent survey has shown.

Statistics compiler IHS Markit said its composite purchasing managers index rose from 55.9 to 56.8 in February, less than the 57.6 originally reported.

The improvement brought the index to its highest level since May 2011 and moved the indicator further above the 50-point threshold dividing expansion from contraction.

The result was weaker than initially reported because activity in services, one component, was not as strong as the preliminary results indicated.

The index for services grew to 57.5 from 56.4 in February, but failed to hit the 58.5 preliminary reading.

Alex Gill, economist at IHS Markit, said that despite the revision, the service industry pointed to a strong first quarter, with companies increasing their hiring in March as the flow of new business also improved.
He said, "The sector remains largely resilient to uncertainty generated by the upcoming presidential elections".

"A punchy Q1 GDP figure therefore looks increasingly likely, while a further round of job creation signalled by March's survey data is likely to be reflected in official employment data," he added.

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