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French services sector activity improves
Service providers in France reported a rise in business activity for the third time in the past four months during July. That said, the rate of growth was marginal overall. New business received by service providers increased moderately, contributing to a further rise in backlogs of work. Employment grew marginally, while companies' business expectations remained positive. Input prices rose modestly, whereas there was a further drop in prices charged.
The seasonally adjusted headline Markit France Business Activity Index - which is based on a single question asking respondents to report on the actual change in business activity at their companies compared with one month ago - posted 50.5 in July. Up from 49.9 in June, the latest index reading pointed to a marginal rate of expansion that was broadly in line with the average seen during 2016 so far (50.3).
The final seasonally adjusted Markit France Composite Output Index - which covers the combined manufacturing and service sectors - registered 50.1 in July. Up from 49.6 in June, the latest index reading was indicative of broadly no change in private sector activity during the latest survey period.
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