Service sector

Growth in the services sector in France in October offset by the weakness of the manufacturing sector – PMI

PARIS, October 22 (Reuters)Growth in France’s dominant services sector has been offset by weakness in manufacturers, a monthly survey showed on Friday, as supply chain issues plagued businesses.

IHS Markit said its October services sector flash PMI for France rose to 56.6 from 56.2 in September, beating market forecasts of 55.5.

However, October’s flash manufacturing PMI came in at 53.5, down from 55.0 in September and below a market forecast of 54.0.

The headline flash composite PMI for October – which includes both the services and manufacturing sectors – came in at 54.7, down from 55.3 in September, in line with forecasts but a little higher. six month low.

PMI figures remained above the 50-point threshold separating expansions in activity from contractions, but France’s flash manufacturing production PMI for October fell to a 17-month low of 46.2 points.

IHS Markit said supply chain problems caused by transportation issues that led to delays of vital goods and components had impacted the French manufacturing sector.

“The responsibility for France’s economic recovery has been placed firmly on the shoulders of the services sector in October, as the latest PMI data showed a decline in manufacturing output for the first time since January,” the economist said. Principal of IHS Markit, Joe Hayes.

Hayes added that positives included a recovery in tourism as coronavirus travel restrictions were eased.

“Nevertheless, the service sector’s sensitivity to virus-related politics means that the risks of the pandemic cannot be ignored and we remain prepared for a difficult winter ahead,” he added.

(Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson)

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