Courtesy of Mish.
French Private Sector Output Decline 5th Month
The demise in France continues. Markit reports French Private Sector Output Falls Further in September.
Key points:
- Flash France Composite Output Index(1) falls to 49.1 (49.5 in August), 3-month low
- Flash France Services Activity Index(2) drops to 49.4 (50.3 in August), 3-month low
- Flash France Manufacturing Output Index(3) rises to 47.9 (45.8 in August), 4-month high
- Flash France Manufacturing PMI(4) climbs to 48.8 (46.9 in August), 4-month high
The latest flash PMI data indicated a fifth consecutive monthly decline in French private sector output during September.
Underlying reduced activity was a drop in the level of new business received by French private sector firms during the latest survey period. Although slight, the reduction in new orders reversed a rise in August. Whereas manufacturers signalled a solid decline in new work, service providers registered a fractional fall. Panellists commented on subdued demand conditions both domestically and in certain export markets. Manufacturers recorded a drop in foreign orders for the fifth month running.
Employment in the French private sector continued to fall in September, extending the current period of job shedding to 11 months. Moreover, the rate of contraction quickened to the sharpest since February. Similar rates of decline were indicated in the services and manufacturing sectors.
Backlogs of work in the French private sector decreased for a fifth successive month in September, although the rate of contraction eased to a fractional pace. Slight growth of outstanding business at service providers was offset by a marked reduction of backlogs at manufacturers.
Comment:
Jack Kennedy, Senior Economist at Markit, which compiles the Flash France PMI ® survey, said: “French economic performance weakened in September, as a return to contraction of the service sector outweighed an easing rate of decline in manufacturing. Anaemic demand continues to hold back the private sector, with further price cutting insufficient to prevent new orders from falling. Firms responded to the continued weakness by lowering employment at the sharpest rate since February.”
Eurozone Composite Signals Slowdown
Markit reports Flash Eurozone PMI Signals Further Waning of Growth.
Key points:
- Flash Eurozone PMI Composite Output Index(1) at 52.3 (52.5 in August). 9-month low.
- Flash Eurozone Services PMI Activity Index(2) at 52.8 (53.1 in August). 3-month low.
- Flash Eurozone Manufacturing PMI(3) at 50.5 (50.7 in August). 14-month low.
- Flash Eurozone Manufacturing PMI Output Index(4) at 51.0 (51.0 in August). Unchanged.
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