France PMI Manufacturing rose to 50.9 in September, up from 49.8, above expectation of 50.6. However, PMI Services dropped to 47.5, down from 51.5, missed expectation of 51.7. PMI Composite dropped to 48.5, down from 51.6, hitting a 4-month low and was back in contraction.
Eliot Kerr, Economist at IHS Markit said: “The sharp rise in COVID-19 cases recorded across France during September helped to explain the first fall in business activity since May. August data had already pointed to a slowdown in the recovery but now the path towards pre-coronavirus levels of activity has gone into reverse. The rise in case numbers has been accompanied by fresh restrictions, but has also caused hesitancy among businesses due to fears of a second round of temporary business closures. For now, at least, firms remain optimistic towards the year ahead outlook, but should the current trajectory of infection rates persist, that confidence is likely be tested in the coming months.”