Latest data released by Markit - 2 November 2020
The preliminary release can be found here. French factory activity is seen holding up last month but tighter restrictions may weigh on sentiment towards the latter stages of Q4. In any case, the services sector drag will prove more damaging for the economy as a whole.
Markit notes that:
"The latest PMI data pointed to another solid month for French manufacturers, as the sector continued to recover from the coronavirus-induced downturn earlier this year. Although output growth softened, it remained broadly in line with the series trend, and new orders increased at a quicker rate.
"Slightly less positive was the continued reduction in employment, however, the rate of workforce contraction continued to ease. Meanwhile, sentiment regarding future output remained in positive territory, so it is possible that employment will continue to trend towards stabilisation.
"However, the manufacturing sector now faces the significant possibility that COVID-19 restrictions will remain in place for a prolonged period. According to flash PMI data, the recent imposition of curfews has already had a substantial negative impact on the service sector, and that is likely to spill over into the manufacturing sector going forward. Furthermore, with the winter months fast approaching, a further tightening of measures cannot be ruled out."
