HomeEconomyFrench economy surprises economists with stronger-than-expected growth in services

French economy surprises economists with stronger-than-expected growth in services

Although the social movements affected industrial production, services were saved and activity picked up again in the first quarter.

Private sector activity in France grew more than expected in April, helped by strong service sector performance, early results from S&P Global’s monthly purchasing managers’ survey showed on Friday.

The flash PMI for the services sector rose to 56.3 from 53.9 in March, beating the Reuters consensus of 53.4. Its equivalent for the manufacturing sector, on the other hand, fell to 45.5 after 47.3.

This is an increase in activity for the third consecutive month, S&P Global points out in its conclusions, after activity returned to growth in February for the first time since last July.

Economists and analysts expected it to average 47.8. The composite “flash” PMI, which includes the two sectors, thus returned to 53.8 and surpassed the consensus, which placed it at 52.7, like last month.

“The French private sector is starting the second quarter on a positive note, with the service sector, which accounts for around 80% of the country’s economy, posting its highest growth in April since May 2022,” said Norman Liebke, of Hamburg Commercial Bank. .

“The large social movements observed in France, against the pension reform, have visibly weighed on the latest PMI data for the manufacturing sector. Surprisingly, the service sector does not seem to have been affected”, adds the economist.

Author: Frederic Bianchi with AFP
Source: BFM TV

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