FX.co ★ French Private Sector Moves Closer To Stabilization

Private sector activity in France is moving towards stabilization, thanks to a renewed expansion in the service sector. This data comes from a survey conducted by S&P Global, released on Tuesday.

The HCOB composite output index, an indicator of overall health in the private sector, reached a new 11-month high of 49.9 in April. This was a significant increase from the previous month's 48.3, signalling a widespread business activity stabilization in the private sector.

We see the service sector expanding for the first time since May 2023. However, a rapid decline in manufacturing output slowed down the overall rate of expansion. The Purchasing Managers' Index (PMI), a gauge of the economic health of the manufacturing and service sectors, for services reached a score of 50.5. This is the highest score in eleven months, surpassing the predicted climb to 48.9 from 48.3 in February.

Conversely, the manufacturing PMI fell to a three-month low of 44.9, down from 46.2 a month earlier. This was lower than the forecasted score of 46.9.