Strong PMI data driven by services

Positive print for the French PMIs with services at 58.2 (55.5 exp, 56.6 prev), manufacturing at 54.6 (53.1 exp, 53.6 prev) and composite at 56.3 (53.9 exp, 54.7 prev). Strong output for services and employment in general and further cost pressures. Only a small market reaction as we expected to an upside print. Highlights from the Markit press release:

• "The fastest increase in services activity for almost four years"
• "In order to meet existing and expected demands on their businesses, private sector employment across France continued to increase in November. In line with the trend seen in recent months, jobs growth remained well above its historical average and was primarily led by service providers."
• "Elsewhere, steep rates of both output price and input cost inflation were once again recorded in November. Price pressures were particularly acute at manufacturers"
• "Selling charges were increased at the strongest rate since May 2011 during November as both manufacturers and service providers marked up their prices to stronger extents to protect their profit margins."