Mixed news just out on the French economy, with stronger activity reported in its services sector - but also a quickening of the pace of job cuts across the private sector and a worrying further decline in factory output, writes FastFT.
The initial or “flash” purchasing managers’ index reading for the country’s manufacturing sector slipped to just 46.5 in August, a 15-month-low, according to a survey compiled by Markit Economics.
A reading below 50 indicates contraction, while above that line signals growth.
Alarmingly, the survey shows that private sector employment fell for a tenth straight month in August, while the rate of job losses quickened to the fastest since February
In services, by contrast, the PMI figure rose to 51.1, as providers reported a further rise in activity.
Markit economist Jack Kennedy said the data didn’t indicate a significant pick-up in the struggling economy anytime soon:
Modest expansion in France’s dominant service sector masked ongoing weakness in manufacturing during August. Overall, the data point to quarterly GDP tracking around stagnation in the third quarter, In conjunction with continuing the flat trend seen since the turn of the year.
An acceleration in the rate of job cutting combined with ebbing business confidence in the service sector during August offers little to suggest that the economy is set to snap out of its sluggish performance any time soon.
