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- France’s business activity unexpectedly declines in September - IHS Markit
France’s business activity unexpectedly declines in September - IHS Markit
The report from
IHS Markit revealed on Wednesday that France’s business activity declined for
the first time in four months during September amid widespread reports from panelists
of renewed disruption related to the COVID-19 pandemic.
According to
the report, the September decline in activity was predominantly driven by a solid
reduction in activity at services firms, while manufacturers recorded a
slightly faster output expansion than in August.
The Flash
France Services Activity Index came in at 47.5 in September, down from 51.5 in
August. This was the lowest reading since May and pointed to return into
contraction territory. Economists had forecast the index to stay at 51.5 in September.
Meanwhile
Flash France Manufacturing PMI
rose to 50.9 in September from 49.8 in August, pointing to a rebound in factory
activity. Economists had expected the indicator to climb to 50.5 in September.
As a result,
the Flash France Composite Output Index fell to 48.5 in September from 51.6 in
August. That marked first fall in business activity since May. Economists had
forecast the index to rise to 51.9 in September. The drop in aggregate business
activity came amid a modest reduction in new work. In addition, new orders fell
in both monitored sectors, albeit at a quicker pace among service providers.
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