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French business activity slowed slightly in May -PMI
Global Banking and Finance Review
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PARIS (Reuters) – French business activity slowed slightly in May compared to the previous month, a preliminary survey showed on Tuesday, as inflationary pressures took the shine off fewer COVID-19 restrictions.
S&P Global said its flash May Purchasing Managers’ Index (PMI) for France’s services sector was 58.4 points – down from a final number of 58.9 in April. Economists polled by Reuters had forecast 58.6 for the May flash reading.
Any figure above 50 indicates growth.
The May flash PMI for France’s manufacturing sector fell to 54.5 points from a final number of 55.7 in April, and also came in below a forecast of 55.0.
The May flash composite PMI – which comprises both the services and manufacturing sectors – was 57.1, down from 57.5 in April, and below a forecast for 57.0.
French inflation unexpectedly rose in April to a record 5.4%, and President Emmanuel Macron’s government is examining how to help families cope with the rising cost of living.
“According to our panel members, businesses, particularly in the service sector, enjoyed another boost to their order books as a result of the removal of pandemic restrictions in recent months,” said Joe Hayes, senior economist at S&P Global Market Intelligence.
“The picture is more gloomy on the manufacturing side of France. As well as sustained supply-chain pressures and challenging conditions for exporters, rapid inflation is dissuading clients from placing orders,” added Hayes.
(Reporting by Sudip Kar-Gupta; Editing by Catherine Evans)
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