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Here's some news that caught my eye earlier today when I was on the road: The Markit Flash France PMI® shows French private sector output continues to fall at marked rate in May.
Key points:Mish Comments
- Flash France Composite Output Index unchanged at 44.3
- Flash France Services Activity Index unchanged at 44.3
- Flash France Manufacturing PMI rises to 45.5 (44.4 in April), 9-month high
- Flash France Manufacturing Output Index up to 44.3 (44.1 in April), 9-month high
The downturn in French private sector output continued in May. Unmoved from April’s reading, the Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, posted 44.3. Although remaining above the levels registered in Q1, the latest reading was indicative of a marked rate of contraction in overall activity.
Jack Kennedy, Senior Economist at Markit and author of the Flash France PMI®, said:
“May’s unchanged PMI reading points to ongoing struggles for the French private sector economy. Activity has continued to fall at a marked pace in Q2 so far, suggesting that another drop in GDP could well be on the cards following the recent confirmation that France was in recession during the previous two quarters. PMI data highlight continued pressure on employment and operating margins, as the difficult business climate facing French companies persists.”
Scores below 50 designate contraction, and scores in the 44-range designate substantial contraction, so those 9-month highs just go to show how awful conditions are.
With French president Francois Hollande at the helm of France, and the nannycrats in Brussels in control elsewhere, don't expect conditions to get much better any time soon.
Mike "Mish" Shedlock