September 23, 2024 07:23 GMT
FRANCE DATA: Larger Than Expected Pullback In Flash Sep Services PMI
FRANCE DATA
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The French services PMI fell much more than expected to 48.3 (vs 53.1 cons, 55.0 prior). This was the joint weakest reading since March this year and represents a significant unwind of last-months Olympic-induced bounce. The manufacturing PMI was also a little lower than expected at 44.0 (vs 44.2 cons, 43.9 prior) and has been in contraction since January 2023.
Key notes from the release:
- “With the Olympic Games in Paris coming to an end, panel members cited a drop-off in customer numbers, although there were mentions of generally subdued consumption from clients and cautiousness amongst buyers”.
- “The drop in sales was particularly pronounced in the manufacturing sector, with firms reporting lower interest from customers in North America and other parts of Europe such as Germany”.
- “Nevertheless, business confidence across France strengthened during September”, but “negative sentiment across manufacturing contrasted with a considerable uplift in positivity among services firms”.
- “The overall rate of input price inflation cooled to a 46-month low, with both manufacturers and services providers experiencing an alleviation of cost pressures”
- “French firms offered discounts for the first time since February 2021. Price reductions were exclusive to the service sector, although factory gate charges were broadly unchanged since August”.
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