French Private Sector Activity Broadly Stabilizes

(RTTNews) - France's private sector economy broadly stabilized in November driven by a fresh rise in services activity, flash survey results from S&P Global revealed on Friday.

The HCOB composite output index rose more-than-expected to a 15-month high of 49.9 in November from 47.7 in October. The reading was seen at 48.1.

A score close to the 50.0 no-change threshold signals virtually stable levels of activity across France.

The service sector registered its first expansion in activity in 15 months. Although the increase was only marginal, it was enough to almost fully offset November's quicker decline in factory production.

The flash services Purchasing Managers' index posted 50.8, up from 48.0 in October. The score was above economists' forecast of 48.4.

By contrast, the factory PMI dropped unexpectedly to 47.8 from 48.8 in the prior month. The score was forecast to rise to 49.0.

"The French private sector shows signs of stabilisation in November after October's moderate decline, which we attributed largely to political turmoil and the resulting uncertainty," Hamburg Commercial Bank Junior Economist Jonas Feldhusen said.

"Given the unresolved budget and persistent political tension, the foundation of this stabilisation remains on shaky ground," Feldhusen added.