France Services Activity on a 5-Month Low but Demand Nears Pre-Pandemic Levels

Source: IHS Markit

France Services Business Activity was 56.2 in September, a five-month low and down from 56.3 in August. CAC 40 is up +0.54%, EURUSD is down -0.18%.

• Despite falling in September, France’s demand was still robust and continued to approach the levels seen before the pandemic.
• Combined with the Manufacturing Output Index, France’s Composite Index was at 55.3, below 55.9 posted in August,
• Employment remained robust, with the rate of hiring the fastest in about three years.
• Inflationary pressures persisted, with input prices rising the quickest since 2008 due to rising raw materials. Output prices rose at a sharp rate but below July’s peak.
• Business confidence only rose marginally but remains at elevated levels.