Latest data released by Markit - 23 November 2021
- Prior 56.6
- Manufacturing PMI 54.6 vs 52.8 expected
- Prior 53.6
- Composite PMI 56.3 vs 53.4 expected
- Prior 54.7
That's a surprise beat across the board as French business activity held up with the services sector in particular bouncing back quite strongly after some sluggishness in the past four months since the summer peak.
The details still reveal persistent supply chain disruptions and that is keeping price pressures elevated with input cost inflation keeping close to October's 17-year peak.
Markit notes that:
"Having embarked on a clear period of slowing growth in the months leading up to October, the flash PMI data for November showed a fresh acceleration in French economic expansion. As well as stronger growth in output, new orders rose at a faster pace, which firms suggest is down to businesses recovering, helping to lift client demand.
"However, the driving force behind improvements in the data is services. Manufacturers are still struggling with component shortages, long lead times and subdued demand conditions. These factors drove back-to-back drops in production.
"Unfortunately, this puts the wider economic recovery in a precarious position, especially with the raft of new COVID-19 containment measures being implemented across other parts of Europe. While French officials have talked down the prospect of imminent restrictions, the trajectory of the virus in the coming weeks will be a key determinant of near-term economic activity, as any new restrictions are likely to hit the service sector, which at present is giving the economic recovery its principal impetus."
