PARIS: France's private sector shrank at its slowest pace in 17 months in July, a survey showed on Monday, adding to signs of an emerging recovery in the euro zone's second-largest economy.
Data compiler Markit said the purchasing managers index (PMI) index of activity in both the manufacturing and services sector showed businesses fared better in July than at any time since February 2012, while activity was still contracting.
The composite PMI index rose to 49.1, up from June's 47.4 and from a preliminary reading of 48.8 for July. In the services sector, which alone generates more than half of French economic activity, the PMI index came in at an 11-month high of 48.6, up from 47.2 in June.
"The French service sector made a further move towards stabilisation in July, with activity and new business both showing slower falls," said Markit economist Jack Kennedy.
"A sunnier outlook appears to be taking hold among service providers, as evidenced by future activity expectations improving to the highest level for almost a year."
The pace of job shedding in the services sector eased for the third month in a row, while the contraction in new business orders in that sector also slowed.
Both have been contracting for over a year. Higher readings in business confidence indicators including those compiled by Markit and a rise in industrial output have prompted French President Francois Hollande to say that "recovery is here."
Businesses and economists are more sceptical, however, pointing out that these signs are fragile and not enough to create jobs.
France's statistics office INSEE has estimated that the 2 trillion euro economy has likely grown 0.2 percent in the second quarter, pulling itself out of a shallow recession, but not enough to keep the economy from marginally shrinking overall this year.
indiatimes.com
Data compiler Markit said the purchasing managers index (PMI) index of activity in both the manufacturing and services sector showed businesses fared better in July than at any time since February 2012, while activity was still contracting.
The composite PMI index rose to 49.1, up from June's 47.4 and from a preliminary reading of 48.8 for July. In the services sector, which alone generates more than half of French economic activity, the PMI index came in at an 11-month high of 48.6, up from 47.2 in June.
"The French service sector made a further move towards stabilisation in July, with activity and new business both showing slower falls," said Markit economist Jack Kennedy.
"A sunnier outlook appears to be taking hold among service providers, as evidenced by future activity expectations improving to the highest level for almost a year."
The pace of job shedding in the services sector eased for the third month in a row, while the contraction in new business orders in that sector also slowed.
Both have been contracting for over a year. Higher readings in business confidence indicators including those compiled by Markit and a rise in industrial output have prompted French President Francois Hollande to say that "recovery is here."
Businesses and economists are more sceptical, however, pointing out that these signs are fragile and not enough to create jobs.
France's statistics office INSEE has estimated that the 2 trillion euro economy has likely grown 0.2 percent in the second quarter, pulling itself out of a shallow recession, but not enough to keep the economy from marginally shrinking overall this year.
indiatimes.com
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