Growth in French business activity eased in August -PMI By Reuters

Growth in French business activity eased in August -PMI By Reuters


© Reuters. FILE PHOTO: A waiter serves dishes in a dining room at Au Petit Riche restaurant in Paris as cafes, bars and restaurants reopen indoor dining rooms in France, June 9, 2021. REUTERS/Pascal Rossignol

PARIS (Reuters) – Growth in French business activity eased in August compared to July, according to initial forecasts in a monthly survey, as problems with supplies of goods and COVID-19 health protocols impacted trade.

Data compiler IHS Markit said its preliminary Purchasing Managers’ Index (PMI) for France’s dominant services sector fell to 56.4 points in August from 56.8 in July — below a forecast for an August reading of 57.0 points.

The August preliminary manufacturing PMI also fell to 57.3 points from 58.0 in July, below a forecast for 57.8 points.

The overall August preliminary composite PMI fell to 55.9 points from 56.6 in July, although overall the PMI figures remained above the 50-point threshold dividing an expansion in activity from a contraction.

Problems with global shipping and transport have resulted in supply chain issues for many companies around the world.

Several Chinese ports are facing congestion as vessels due to call at Ningbo are being diverted and cargo processing is slowed, partly due to stricter disinfection measures under China’s “zero-tolerance” coronavirus policy.

Some French businesses are also struggling with rules requiring customers to hold a COVID-19 health pass to eat or drink in a restaurant or enter a shop.

“Another strong month of growth across France was signalled by the flash PMI figure for August,” said IHS Markit senior economist Joe Hayes.

“There are, however, factors holding back growth to some extent. On top of the heavy supply chain issues, some survey respondents noted that there had been some adverse consequences on new business due to the ‘pass sanitaire’, requiring proof of a double vaccination or low risk of carrying COVID-19 infection,” added Hayes.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply