France PMI Services was finalized at 57.4 in November, up from 56.6 in October, signalling the strongest growth since June. Markit said strong jobs growth sustained as business activity continued to grow. Firms reported still-strong demand pressures. output prices rose at fastest rate since June 2011. PMI Composite was finalized at 56.1, up from October’s 54.7.
Joe Hayes, Senior Economist at IHS Markit:
“November presented another positive month for France’s service sector, with growth accelerating to a five-month high amid still-strong hiring activity and improving demand conditions.
“To be clear though, the service sector is what is keeping the economy afloat at the moment as France’s manufacturing sector is struggling with massive supply-related constraints.
“This puts the wider economy in a precarious position, because as we’ve seen on other parts of Europe, the fate of the service sector is still a function of the trajectory of COVID-19 cases. Policymakers in France have so far talked down the potential for the most stringent of restrictions being implemented, which bodes well for economic activity through the next couple of quarters, but as we’ve seen before, this can change rapidly.
“That said, if France manages the current wave of infections, this should allow robust growth in the service sector to continue.”
