France April final services PMI 58.9 vs 58.8 prelim

• Composite PMI 57.6 vs 57.5 prelim

The headline reading sees French services activity accelerate to its highest in over 4 years, as firms enjoyed a sustained boost to demand amid fewer COVID-19 restrictions. That said, inflation pressures remain severe as prices charged for the provision of French services rose at a record rate in April. S&P Global notes that:

"It was another positive month for France's services firms in April as business activity in the largest sector of the economy increased at the fastest rate in over four years. The economy is still reaping the benefit of reduced COVID-19 restrictions as many companies linked strong and sustained growth in their order books to the pandemic recovery.

"Employment data was also a testament to the strength of the sector at the beginning of the second quarter as jobs growth accelerated to a six-month high. Additional staff were recruited to accommodate for demand growth, but also to help improve operating capacities.

"Services expansion is absolutely crucial for the French economy right now as the weakness in the manufacturing sector looks set to persist. That said, once the postCOVID catch-up fades, momentum is likely to slow. "Rising prices also pose a risk to the outlook for the sector. Output charges rose at the fastest rate on record in April, and some panellists were concerned about the impact of rising inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term on activity levels."