Aug 23

Growth Slows in August in the private sector in France

Tag: calculation, connection, corporations, different, work — admin @ 5:15 am

The pace of growth in the private sector in France has returned to a low of five months in August with the slower growth in services, according to the PMI survey published Monday by Markit Economics.

The increase in new cases suggest, however point to a continued recovery.

The index of activity in services fell to 59.9 in draft form, touching a low of four months, after 61.1 in July.It remains well above the 50 mark, which marks the border between expansion and contraction.

In manufacturing, the index flash has however increased to 54.7, reaching a high of two months, after 53.9 in July.

Economists polled by Reuters on average expected manufacturing PMI to 53.4 and a services index to 60.5.

The composite index – which includes services and industry – fell to 59.0 in August, reaching a low of five months, after 59.7 in July.

The sub-index of manufacturing production rose in August to reach its highest since May to 57.1 from 56.7 in July.

The sharp rise in new business in services as in manufacturing, despite an activity traditionally slows down in August, points to a continued recovery in France, where GDP grew by 0.6% in the second quarter.

The new orders component in the manufacturing sector registered 57.3 in August as against 54.5 in draft final version last month.

The increase in hiring in the services sector in August was reflected in employment growth in the private sector for the fourth consecutive month despite a continued destruction of jobs in manufacturing, although at a slowed.

The price of purchases rose in August as a result of rising commodity prices.Their rate of increase had touched a low of five months in July.

The government Friday lowered its forecast for GDP growth in 2011 reducing to 2.0% against 2.5% previously. He however confirmed its forecast for GDP growth of 1.4% this year and has not ruled out that this figure may be exceeded. However, economists expect a slowdown in growth in the second half with French phasing effects of stimulus measures.