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French private sector output growth remains solid in November

Published 11/23/2016, 03:05 AM
© Reuters.  French private sector output growth remains solid in November
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Investing.com - French private sector output growth remained solid in November, easing concerns over the economic outlook for the euro zone’s second largest economy according to data released on Wednesday.

The preliminary reading of the Markit services purchasing managers’ index came in at 52.6 this month from 51.4 in October.

It was the highest reading in two months and was better than economists’ forecasts for an uptick to 51.9.

The manufacturing PMI declined to a two month low of 51.5, compared to expectations for 51.4 and down from 51.8 in October.

The composite output index, which measures the combined output of both the manufacturing and service sectors rose to a two-month high of 52.3 from 51.6 in October, beating expectations for 51.8.

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

“The latest figures point to a further solid rate of growth in the French private sector. The expansion was driven by another marked rise in service sector activity, buoyed by a sharp rise in new orders.”

“However, the health of the goods-producing sector was more precarious, with manufacturing output increasing at a more subdued rate amid a further stagnation in new orders," Alex Gill, economist at survey compiler Markit said.

EUR/USD was at 1.0621 from around 1.0623 ahead of the release of the data, while EUR/GBP was at 0.8560 from 0.8561 earlier.

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