According to the latest flash France Purchasing Managers’ Index (PMI) survey, French manufacturers and service providers have experienced lower rates of activity during the month of November.
In fact, according to the survey, compiled by the financial services company, Markit, growth in these industries was modest and the slowest it has been in the past three months, with a number of businesses citing recent terrorist attacks in Paris as negatively impacting activity.
Overall, French PMI data shows the country’s private sector output growth to be easing off somewhat
Overall, French PMI data shows the country’s private sector output growth to be easing off somewhat; with the Composite Output Index sitting at 51.3, down from 51.9 in October – falling to a three-month low.
Jack Kennedy, Senior Economist at Markit, the company that conducted the survey, said: “French private sector output growth weakened slightly in November, with the Paris attacks reported to have hit activity among some service providers.
“However, the trend in new business firmed a little, with growth quickening to a five-month high, while backlogs of work rose again.
“While the longer-term economic impact following the attacks remains uncertain, PMI data suggest that GDP is on course to post another modest expansion in Q4 following the 0.3% growth reported in the third quarter,” added Kennedy.
Despite the private sector growth weakening slightly in France, the opposite is true across the Eurozone, with businesses in the region reporting “the fastest rates of growth in business activity and employment for four-and-a-half years in November”, according to the Markit Flash Eurozone PMI report.
“The PMI shows a welcome acceleration of eurozone growth, putting the region on course for one of its best quarterly performances over the past four-and-a-half years,” said Chris Williamson, Chief Economist at Markit. “The data are signalling GDP growth of 0.4% in the closing quarter of the year, with 0.5% in sight if we get even just a modest uptick in December.
“The improved performance in terms of economic growth and job creation seen in November are all the more impressive given last weekend’s tragic events in Paris, which subdued economic activity in France – especially in the service sector.
“However, with recent comments from ECB chief Mario Draghi highlighting how the central bank remains disappointed with the strength of the upturn at this stage of the recovery, November’s slightly improved PMI reading will no doubt do little to dissuade policymakers that more needs to be done at their December meeting to ensure stronger and more sustainable growth,” he added.