Services/Composite disappoint by 2 points, manuf in line

Manufacturing PMI largely in line but composite and services PMIs miss by 2 points. Inflationary pressures are still accelerating. Growth is continuing but starting to slow, albeit where there is growth it seems to be linked to better demand conditions. Most of the details seem to back up the headline in this print. Highlights from the press release:

• On inflation: "Overall input costs rose at the fastest rate since October 2004, reflecting greater expenses relating to staff, transport, energy and a wide array of raw materials. In response, selling charges were raised to the quickest extent since records began in October 2002."
• "Latest survey data showed economic activity rising at a slower rate at the beginning of 2022, with combined manufacturing and service sector output growth easing to a nine-month low."
• "Where an increase in activity was reported, this was often linked to better demand conditions. That said, output was hindered by staff shortages, according to firms"
• "Overall new orders at private sector firms in France increased during January. The upturn in sales was also broad-based across both manufacturing and services, but the rate of expansion eased in both cases."