Latest data released by Destatis - 3 September 2020
- Composite PMI 51.6 vs 51.7 prelim
The preliminary report can be found here. This reaffirms that French economic activity is seen easing in August as the services sector slows down, after a sharper recovery seen over the past few months.
The real challenge now will be observing the pace of the recovery in the latter stages of the year for a sense of how well the economy is coping with the fallout.
Markit notes that:
"The latest PMI data came as a disappointment following the sharp rise in private sector activity seen during July, which had spurred hopes that the French economy could undergo a swift recovery towards precoronavirus levels of output. However, with activity growth easing considerably in the latest survey period, those hopes have been dashed and it is more likely that July was a temporary shock driven by a marked increase in the number of reopening businesses. Going forward, we can expect a steadier expansion, but even that comes with the risk of another sharp downturn if infection rates accelerate sufficiently for the government to impose another lockdown."