France PMI manufacturing rose to 53.7 in August, up from 53.3 and beat expectation of 53.5. PMI services rose to 55.7, up from 54.9 and beat expectation of 55.1. PMI composite rose to 55.1, up from 54.4 and hit a 4-month high.
Commenting on the Flash PMI data, Sam Teague, Economist at IHS Markit said:
“Output growth across the French private sector ticked up to a four-month high in August, with both the service and manufacturing sectors seeing stronger expansions. Robust domestic client demand, alongside a renewed upturn in exports provided stimulus for the latest acceleration in growth.
“A key theme in the latest survey were the sharp inflationary pressures reported in the manufacturing sector, with many respondents blaming higher oil-related input cost burdens. This in turn placed downward pressure on confidence towards expected output growth over the next year. That said, despite optimism slipping in August, French businesses continued to hire additional staff at an elevated pace, partly reflecting rising output requirements.”
