Latest data released by Markit - 23 August 2021
- Prior 56.8
- Manufacturing PMI 57.3 vs 57.3 expected
- Prior 58.0
- Composite PMI 55.9 vs 56.5 expected
- Prior 56.6
A slight moderation in overall conditions but French economic activity remains very much in expansion territory in August. There are some growing concerns on supply chain disruptions but overall demand is still holding up for now so that's a positive.
Markit notes that:
"Another strong month of growth across France was signalled by the flash PMI figure for August. Despite some of the challenges businesses are facing on the supply side, it's encouraging to see PMI data consistently signalling robust expansion. Furthermore, given we're now midway through the third quarter, the survey data up to this point suggest we could see another decent outturn in the corresponding GDP figure.
"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. That said, overall demand conditions still remain strong, which supported the fastest rate of jobs growth in almost three years.
"The overall signal from the latest PMI survey is that business conditions remain fruitful for further growth heading into the end of the third quarter."
