Downturn in French services sector eases in February, PMI survey shows
PARIS (Reuters) – The slowdown in France’s services sector eased in February, a survey showed on Tuesday, as company executives reported signs of recovery in export demand and a more optimistic business outlook.
The HCOB France final purchasing managers index (PMI) for the services sector, compiled by S&P Global, rose to 48.4 in February from 45.4 in January, slightly better than the 48.0 reading from an earlier flash estimate.
Although the closely-watched index showed its strongest monthly rise in 13 months, it was still below the 50-point mark that separates growth from contraction.
A composite final PMI, combining data from the services and manufacturing sectors, jumped to 48.1 points from 44.6 the previous month.
Business leaders grew more optimistic, with growth expectations reaching a seven-month high, S&P said. The improved mood was the most apparent in export markets, as orders from foreign clients increased for the first time since last May.
“From this we can deduce that domestic demand is shrinking,” said Hamburg Commercial Bank economist Norman Liebke.
