France PMI Manufacturing dropped to 49.7 in February, down from 51.1, missed expectation of 50.7. It’s a 7-month low and back in contraction region. PMI Services, on the other hand, rose to 52.6, up from 51.0, beat expectation of 51.2. PMI Composite rose to 51.9, up from 51.5.
Commenting on the Flash PMI data, Eliot Kerr, Economist at IHS Markit said:
“Faster private sector growth in February can be solely attributed to services, where the expansion in activity was the quickest for four months. Meanwhile, there was fresh disappointment in the manufacturing sector.
“Despite PMI data signalling green shoots for manufacturers in recent months, there was a renewed production decline in February. A first output contraction for five months came amid several headwinds for demand and a subsequent reduction in new orders. Automotive sector weakness, the prolonged discontinuation of Boeing 737 Max production and supply-chain issues related to the coronavirus, all negatively impacted on French manufacturers in the latest survey period.”
