The recovery of the French economic activity inches closer in February - PMI

23 Feb, 2024

The recovery of the French economic activity inches closer in February - PMI

The latest survey indicates a significant improvement in French business activity for February, signaling a positive shift towards economic recovery. Notably, employment saw an uptick for the first time since October, accompanied by a boost in business confidence to a seven-month peak. According to the HCOB flash purchasing managers index, France's services sector showed resilience with a reading of 48.0, surpassing the Reuters poll forecast of 45.6.

This marks a notable increase from January's reading of 45.4. Similarly, the flash manufacturing PMI climbed to 46.8 points, exceeding expectations and outperforming January's final PMI of 43.1. The composite PMI, which combines services and manufacturing, surged to 47.7 points, indicating a significant improvement from January's 44.6.

Economist Norman Liebke from Hamburg Commercial Bank notes that while the French economy is still contracting, the pace has slowed significantly. He attributes this progress to factors such as increased demand in tourism, suggesting a gradual shift towards growth in the service sector. Overall, these indicators paint an optimistic picture of France's economic trajectory, with signs pointing towards a gradual recovery.