- Composite PMI 55.8 vs 55.6 prelim
The French services sector retained a strong performance at the end of last year, with business activity expanding at the second-fastest rate since June. New business growth did ease amid omicron worries but overall activity remains robust amid solid demand. Markit notes that:
"Against the negative flow of news with respect to COVID-19 cases and the emergence of the Omicron variant, survey data for December showed a resilient performance from the French service sector in the lead up to Christmas.
"Business activity grew at the second-quickest rate since June, outpaced only marginally by that seen in November. Anecdotal evidence suggests that demand for services remains robust, causing backlogs to build and hiring to continue.
"That said, new order growth weakened amid a notable dent to demand from overseas clients, reflecting the impact that rising COVID-19 infections had on tourism.
"The bigger picture for France's economy however shows its reliance on the service sector. Manufacturing performance continues to underwhelm – services was almost exclusively the driver for growth in December. This unfortunately means that economic growth and the government's response to the Omicron variant are inextricably linked as tighter restrictions will almost certainly place the economy in troubled waters."
