French Activity Picks Up as Manufacturing Returns to Growth
French Activity Picks Up as Manufacturing Returns to Growth
(Bloomberg) --
France’s private sector unexpectedly gained speed in August as solid performance in services was complemented by a return to growth in manufacturing.
IHS Markit’s Purchasing Managers’ Index rose to 52.7 from 51.9 in July, defying economists’ predictions for a slight weakening. The increase was driven by a broad-based pickup in demand, with new orders expanding at the fastest pace since November.
The euro strengthened after the report. It traded 0.1% higher at $1.1095 at 9:20 a.m. Paris time. Stocks rose.
Signs of a recovery in Europe’s second-largest economy, particularly in manufacturing, will be welcome news to policy makers hoping for a growth rebound in the euro area toward the end of the year. Yet much will hinge on whether industrial giant Germany and the rest of France’s neighbors also see a strengthening in activity.
“In contrast to its peers, economic growth in France has remained solid, and the latest set of PMI figures only add weight to the argument that this outperformance is likely to continue in the third quarter,” said Eliot Kerr, an economist at IHS Markit.
Data for Germany are due at 9:30 a.m. Frankfurt time. Gauges for the euro area will be released 30 minutes later.
To contact the reporter on this story: Carolynn Look in Frankfurt at clook4@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Jana Randow
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