PMI Shows Further Deterioration

France September flash services PMI printed at 43.9 (vs 46.0 prior and expected), representing a further deterioration in sentiment. Manufacturing PMI was 43.6 (vs 46.0 prior and 46.3 expected), while the composite figure was 43.5 (vs. 46.0 prior). Key notes from the release are:

• "The contraction seen in factory output was the strongest since May 2020, while services activity fell to the greatest extent in nearly three years."
• "Frequent reports from panel members of poor demand conditions, a key factor behind September’s steep fall in activity."
• "September survey data pointed to a further (albeit fractional) slowing of output price inflation across the French private sector."
• "Services remained the exclusive source of inflationary pressures as the price of manufactured goods fell for a fourth successive month."
• "Private sector employment levels continued to rise at the end of the third quarter as a stronger pace of job creation across the service sector more than offset the quickest rate of factory job losses since August 2020"
• "Confidence towards the next 12 months weakened notably in September"