Latest data released by Markit - 23 September 2020
- Prior 51.5
- Manufacturing PMI 50.9 vs 50.6 expected
- Prior 49.8
- Composite PMI 48.5 vs 51.9 expected
- Prior 51.6
French business activity unexpectedly slows as the surge in virus cases puts a damper on the recovery, with the services sector bearing the brunt of the health crisis.
This reaffirms the narrative that the recovery at the start of Q3 is reaching a ceiling and that things may not be as rosy as anticipated towards the latter stages of the year.
EUR/USD nudging a little lower on the data here, dropping from 1.1693 to 1.1675.
Markit notes that:
"The sharp rise in COVID-19 cases recorded across France during September helped to explain the first fall in business activity since May. August data had already pointed to a slowdown in the recovery but now the path towards pre-coronavirus levels of activity has gone into reverse. The rise in case numbers has been accompanied by fresh restrictions, but has also caused hesitancy among businesses due to fears of a second round of temporary business closures.
"For now, at least, firms remain optimistic towards the year ahead outlook, but should the current trajectory of infection rates persist, that confidence is likely be tested in the coming months."
