France PMI Manufacturing dropped to 42.9 in March, down from 49.7, hitting a 86-month low. PMI Services plummeted to 29.0, down from 52.6, hitting series low. PMI Composite dropped to 30.2, down from 51.9, also a record low. The data suggested that French private sector activity contracted at the sharpest rate in nearly 22 years of data collection.
Commenting on the Flash PMI data, Eliot Kerr, Economist at IHS Markit said:
“The latest PMI data revealed dismal results for the French private sector, with coronavirus-driven shutdowns leading to widespread economic disruption. March saw a record rate of declines for services activity, while the manufacturing sector suffered to the greatest extent since the global financial crisis. Taken together, these declines suggest GDP is collapsing at an annualised rate approaching double digits.
“Currently with the fourth highest number of confirmed infections in Europe, France has put in place wide-ranging measures to stem the further spread of COVID-19 but is also balancing these with policies to limit the associated economic impact. Over the coming months, the PMI will be a crucial indicator in assessing the development of the effects of these policies on the economy.”
