Latest data released by Markit - 23 June 2020
- Prior 31.1
- Manufacturing PMI 52.1 vs 46.0 expected
- Prior 40.6
- Composite PMI 51.3 vs 46.8 expected
- Prior 32.1
The better-than-expected headline reading is giving a slight push higher to the euro and risk at the moment, but it must be noted that the context matters.
The services reading is entirely derived from one question i.e. how is your business doing this month compared to the month before? In other words, how are business conditions doing in June relative to May?
In that sense, we all can kind of expect June > May > April considering the circumstances.
Looking at the details, there are positives with output growth rising at its quickest pace since February 2018 and a slight rise in input prices but new orders continued to show a material decline alongside still subdued demand conditions in general.
Markit notes that:
"The latest PMI data suggests that France is finally entering a period of recovery as we move past the peak of the coronavirus crisis. The further loosening of restrictions has allowed some semblance of normality to resume, with many businesses and workers returning to work, particularly in the manufacturing sector.
"Barring any large scale second outbreak, demand should also follow activity into expansion territory, as confidence continues to recover. Given ongoing cross-border restrictions in many countries around the world, this will most likely be driven by the domestic market in the short-run, with international demand taking a little longer to recover."
