France PMI Manufacturing dropped to 58.6 in June, down from 59.4, below expectation of 59.0. PMI Services rose to 57.4, up from 56.6, hitting a 38-month high, but missed expectation of 59.4. PMI Composite rose to 57.1, up slightly from 57.0, an 11-month high.
Joe Hayes, Senior Economist at IHS Markit said: “Strong back-to-back months of output growth are exactly what we expected to see following the peel back of additional lockdown restrictions this month. It means the French economy has enjoyed its best quarterly performance since early 2018.
“With vaccination rates on the rise, survey data suggest that firms are becoming more confident that the stage is set for an economic recovery. Employment levels picked up in June as firms recorded another month of exceptional demand growth. The likelihood of further jobs growth also seems high as rising backlogs of work were coupled with strong positive expectations regarding future output levels.
“However, the survey data continue to shed light on acute supply chain challenges and the pass-through of rising input costs to consumer prices. The recovery could run into some speed bumps if the the supply-side is what is ultimately holding the economy back.”
