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Financial News: France's Private Sector Growth Moderates In July

France's Private Sector Growth Moderates In July

07/24/2017 - 03:12:00 (RTTNews)

(RTTNews) - France's private sector output grew at the slowest pace in six months in July, flash survey data from IHS Markit showed Monday.

The composite output index fell to a 6-month low of 55.7 in July from 56.6 in June. Nonetheless, a score above 50 indicates expansion in the sector.

Softer increases in output were seen across both manufacturers and service providers in July.

The services Purchasing Managers' Index dropped more-than-expected to 55.9 from 56.9 a month ago. The expected reading was 56.4.

Meanwhile, the factory PMI rose to a 75-month high of 55.4 in July, while it was forecast to remain unchanged at 54.8.

"Further increases in total new orders and backlogs suggest that companies will continue to ramp up output and add to payrolls going forward, and marks a solid start to the second half of the year," Annabel Fiddes, an economist at IHS Markit, said.

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