France PMI Manufacturing dropped to 50.3 in December, down from 51.7, and missed expectation of 51.4. PMI Services rose to 52.4, up from 52.2, and beat expectation of 51.8. PMI Composite dropped slightly to 52.0, down from 52.1.
Commenting on the Flash PMI data, Eliot Kerr, Economist at IHS Markit said:
“The latest PMI data pointed to further activity growth in the French private sector, but revealed disappointing results for the manufacturing sector.”
“Following some green shoots in October and November, manufacturing production stagnated and new orders returned to contraction territory. Moreover, employment and outstanding business stuttered to somewhat quell hopes of sustained industrial recovery.”
“On the other hand, service sector growth remained broadly in line with trend and continued to provide support to the economy. Taking into account other data, our Nowcast model points to a healthy growth rate of around 0.4% in the fourth quarter.”