France PMI Services was finalized at 55.5 in February, up from January’s nine-month low of 53.1. PMI Composite was finalized at 55.5, up from January’s nine-month low of 52.7.
Joe Hayes, Senior Economist at IHS Markit:
“As daily COVID-19 case numbers took a downward trajectory, latest survey data showed a rebound in growth across the service sector in February. There were plenty of encouraging signs for economic activity midway through the first quarter – demand for services rose at the fastest pace since last summer, and panel member reports suggest that the underlying market trend is supportive. Looser virus containment measures have helped this, especially with respect to new business from abroad, which rose at a series record rate.
“Risks of growth dampeners still remain notable, however. Inflation risks are clearly tilted to the upside, with soaring energy prices and reports of rising wages maintaining pressure on business costs. It’s clear that pricing power among firms is strong at present. While selling prices continue to rise at near-record highs, new orders are growing at a decent clip. It’s likely that policymakers will need to intervene to cool price pressures, and this puts broader recovery efforts in a precarious position.”
