In March, France PMI manufacturing dropped to 49.8, down from 51.5 and missed expectation of 51.4. PMI services dropped to 48.7, down from 50.2 and missed expectation of 50.6. PMI composite dropped to 48.6, down from 50.4.
Commenting on the Flash PMI data, Eliot Kerr, Economist at IHS Markit said:
“At the end of the first quarter, the French private sector was unable to continue the recovery seen in February, as both the manufacturing and service sectors registered contractions in business activity.
“Worryingly, new orders continued to tumble amid a slowdown in demand and downward momentum in new export business. New work from abroad fell at the fastest pace for nearly three years, with a broad-based decline across both sectors.
“There was some respite in that input price inflation continued to soften, particularly in the manufacturing sector. However, the private sector looks fragile, with the latest data consistent with a stagnation of economic growth. Firms subsequently increased employment at the slowest pace since December 2016.”
