French Services and Manufacturing Give Output Boost, PMI Shows

(Bloomberg) --

France’s private sector grew more strongly than expected in June, with output expanding at the fastest pace since November.

A Purchasing Managers’ Index rose to 52.9 in June from 51.2 a month earlier, IHS Markit said in its flash reading. The improvement, which topped economists’ expectations, points to growth of 0.3% in the second quarter, the report said.

“The French private sector maintained upward momentum at the end of the second quarter, recording a third successive monthly rise in business activity,” said Eliot Kerr, an economist at IHS Markit. “Service providers continued to record solid employment growth, while manufacturers recorded their sharpest workforce expansion for almost a year.”

Both the services and manufacturing sectors contributed to the expansion, expanding by more than economists predicted. International sales also rose for the first time in 8 months.

Nevertheless, a gauge of confidence about the outlook fell from May, reaching its lowest level for 6 months.

To contact the reporter on this story: Jill Ward in London at jward98@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Lucy Meakin

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