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.