January 27, 2023
According to preliminary findings of the purchasing managers survey by S&P Global, France’s private sector activity declined for the third consecutive month in January, albeit marginally, showing that the country’s economic crisis has been mild so far.
Flash Composite Output Index decreased marginally from 49.1 in December to 49.0 in January. Forecasts were that the reading will increase to 49.5.
A score of 50 or higher implies sector expansion, while anything below 50 indicates contraction.
At the beginning of the year, the French private sector was still in contraction, as a result of a continuous decline in the output of manufactured products and the service sector as a whole.
For the sixth consecutive month, the private sector saw a fall in new orders, which led to a reduction in work backlogs.
However, employment growth accelerated to a three-month high, and business optimism also increased. While cost inflation decreased, sales prices increased at their fastest rate in three months.
From 49.5 in December, the services Purchasing Managers’ Index fell to 49.2, a 22-month low. The prediction was for the score to rise to 49.8.
In parallel, the manufacturing PMI increased from 49.2 a month earlier to 50.8 in January, a 7-month high. The predicted result was 49.6.
Source: RTT News
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