Courtesy of Mish.
A quick look at economic data from Markit shows a recovery of sorts in Germany (it will not last) and a contraction in France at the steepest rate in four years. Meanwhile, Italy saw a PMI survey-record decrease in services employment in January.
France – Sharpest Contraction in Four Years
The Markit France Services PMI®, shows service sector business activity falls at sharpest rate since March 2009.
Key points:
- Final Markit France Services Activity Index(1) at 43.6 (45.2 in December), 46-month low.
- Final Markit France Composite Output Index(2) at 42.7 (44.6 in December), 46-month low.
Historical overview:
Summary:
French service providers signalled a further reduction in business activity during January. Moreover, the rate of contraction accelerated to the fastest since March 2009. Incoming new business fell at a slower pace, but there were accelerated declines in both backlogs and employment. Input prices rose further, but output charges decreased at a sharper rate.
The seasonally adjusted final Markit France Services Business Activity Index slipped to 43.6 in January from 45.2 in December. The latest reading was indicative of a marked rate of contraction that was the sharpest for almost four years.
The amount of new work placed with French service providers was down for a tenth successive month in January. Outstanding business in the French service sector decreased at a faster rate in January. The latest fall was the sharpest since August 2009.
Faced with spare capacity, French service providers cut employment further in January. The pace of job shedding quickened to the sharpest for just over three years. Manufacturers also signalled a faster decline in staffing levels during the latest survey period. Consequently, overall employment in the French private sector fell at the sharpest pace in over three years.
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