- July flash services PMI 49.8 vs 47.5 expected
- Prior 46.8
- July flash manufacturing PMI 50.0 vs 51.0 expected
- Prior 51.2
- July flash composite PMI 49.6 vs 47.8 expected
- Prior 47.2
The services print is a 7-month high and that is carrying the French economy in July, amid a step back in the manufacturing sector on the month.
Of note, demand for services was seen rising for the first time since
November last year. So, that brought much stabilisation to the overall economy – even if still in contraction territory, albeit marginally.
That being said, private sector employment
remained under pressure and declined again while business
optimism stayed subdued. So, there’s that.
The only other good news at least is that input cost and
output price inflation rates eased for the second month in
succession. But with renewed tensions between the US and Iran, it’s hard to imagine that as being much of an optimistic takeaway at this stage.
S&P Global notes that:
“While the latest survey data brought with it good news
in the form of the France PMI rising further from its May
low and inflationary pressures easing, it feels overly
optimistic to bank on this momentum continuing given
renewed pressures on oil and gas markets in recent
days. This also raises the odds of the European Central
Bank delivering more monetary policy tightening, which
would exacerbate these headwinds.
“Escalating tensions between the US and Iran bring
fresh uncertainty about inflation, borrowing costs and
geopolitics more broadly, and uncertainty has so often
been to the detriment of the French economy in recent
years.”
This article was written by Justin Low at investinglive.com.