Latest data released by Markit - 23 April 2020
- Prior 27.4
- Manufacturing PMI 31.5 vs 37.0 expected
- Prior 43.2
- Composite PMI 11.2 vs 24.5 expected
- Prior 28.9
That's a new record low for French business activity. All three readings above are the series lows for each respective print as ongoing business closures have stifled both supply and demand in the French economy.
An important note is that the survey period is from 7 April to 22 April, so it is during the peak stages of the lockdown in the country.
In any case, there is just now good news in the report as the contraction in activity is the sharpest since data collection began 22 years ago.
Markit notes that:
"While PMI readings from March were shocking, looser restrictions at the beginning of that month meant that April data were always likely to be worse. However, the numbers recorded in the latest survey period are unprecedented. "The figures for output were by far the lowest on record, with the service sector business activity index barely making double-digits. Total new orders continued to collapse as demand evaporates and employment tumbled further. "Going forward, there are two key areas of focus. Firstly, how quickly will measures be lifted as the gradual easing of restrictions begins on the 11th of May? This will give the clearest indication on how fast we can expect activity to recover in the short-term. Secondly, will the easing of restrictions lead to a second outbreak of the virus? If so, any remaining hopes of a so-called 'V-shaped' recovery will vanish."
