Latest data released by Markit - 5 July 2021
- Composite PMI 57.4 vs 57.1 prelim
A slight revision higher reaffirming the quickest rise in pace in French services activity since January 2018, with the easing of virus restrictions helping to bolster economic conditions and supporting the expansion towards the end of Q2. Markit notes that:
"It comes as no shock to see the France Services PMI producing another strong print for a month in which lockdown measures were peeled back further. We've witnessed a complete quarter of growth for the first time since the pandemic began, and the growth momentum needed to drive a sustained recovery is likely to build as pent-up demand is released and operating capacities expand.
"That said, we're noticing some spillover into the service sector from the intense supply chain distortions seen in the manufacturing surveys. Rising supplier fees and input shortages led to accelerated input price inflation in June. Given the strength of new business at present, firms decided to pass higher costs through to their prices, which rose at the sharpest rate in almost a decade. We're likely to see continued price pressures so long as demand remains resilient."
