Courtesy of Mish.
While laughing at the amusing exchange of letters between the CEO of Titan and Arnaud Montebourg, Minister of Industrial Renewal of France, I awaited the latest PMI report on France, expecting findings to be horrific.
The PMI reports are out today, and inquiring minds will note the Markit Flash France PMI shows the decline in French private sector output accelerates further to reach near four-year record.
Key points:
- Flash France Composite Output Index drops to 42.3 (42.7 in January), 47-month low
- Flash France Services Activity Index falls to 42.7 (43.6 in January), 48-month low
- Flash France Manufacturing PMI climbs to 43.6 (42.9 in January), 2-month high
- Flash France Manufacturing Output Index rises to 41.2 (40.8 in January), 2-month high
Summary:
Latest Flash PMI data indicated that the downturn in French private sector output deepened in February. January’s Markit Flash France Composite Output Index , based on around 85% of normal monthly survey replies, slipped from 42.7 in January to 42.3, its lowest reading since March 2009.
The steeper fall in overall output was driven by an accelerated decline in the service sector where activity contracted at the fastest pace in four years. Manufacturers signalled a slightly slower decrease in production compared with one month previously, albeit still sharper than signalled in the service sector.
New business placed with private sector companies in France fell again in February, extending the current sequence of contraction to one year. The rate of decline quickened slightly since January and was only marginally slower than December’s 45-month record.
Service providers indicated that new business fell at the sharpest rate for just under four years. Survey respondent s commented that difficult business conditions and intensifying competitive pressures had conspired to depress inflows of new work.
France Economic Output
Expect GDP to follow the PMI far more than economists expect.
Eurozone Aggregate PMI…
