France February flash services PMI 57.9 vs 53.5 expected

• Prior 53.1
• Manufacturing PMI 57.6 vs 55.5 expected
• Prior 55.5
• Composite PMI 57.4 vs 53.1 expected
• Prior 52.7

That's a solid report as French business activity growth is seen at the strongest since last June. The momentum gain is seen across both the services and manufacturing sectors, so that points to a solid improvement across the board after the omicron impact. That said, supply chain disruptions are still persisting and that is leading to further upward pressure on prices. Markit notes that:

“The slump in January proved to be short-lived as business activity growth accelerated sharply in February to its strongest since last June. Now that the trajectory of COVID-19 in France is on the downturn, this should continue to facilitate greater activity levels across both sectors. Indeed, anecdotal evidence from our survey panel suggests that business confidence is improving and supporting demand conditions.

“However, the economic themes for 2022 will be focused on supply chains and 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, which seem a long way off normalising based on the latest PMI survey. Supplier delivery times lengthened sharply once again during February, while input cost inflation remains stubbornly elevated. Sources of inflation are broad – our panel members reported rising prices for a multitude of inputs, and these are now being compounded by rising utility costs and wages.

“We’re still yet to see these issues dent output, demand and employment, but it will take prudent macroeconomic management from policymakers to alleviate supply-side pressures without harming the demand-side of the economy.”