France PMI manufacturing rose to 53.1 in July, up from 52.5 but missed expectation of 53.9. PMI services dropped to 55.3, down from 55.9, but beat expectation of 54.3. PMI composite dropped 0.4 to 54.5, hitting a two month low.
Commenting on the Flash PMI data, Alex Gill, Economist at IHS Markit said:
“The French private sector continued to grow at a decent lick at the start of the third quarter. The rate of expansion, however, remains far weaker than seen around the turn of the year.
“Diverging trends remained between the two main sectors, with activity growth at manufactures lagging behind service providers. A notable trend in this regard was a fall in goods exports for the first time in 22 months amid reports that global trade tensions is weighing on external demand.
“Nevertheless, the rate of job creation and degree of business confidence remained strong at both manufacturers and service providers, suggesting the French private sector is poised for further solid near-term growth.”
