News ID: 259112
Published: 1024 GMT September 23, 2019

French economic activity stutters in September

French economic activity stutters in September

French private sector economic activity grew more slowly than forecast in September, according to closely watched survey of executives that found the country’s manufacturing sector was hit by a fall in export business.

IHS Markit’s purchasing managers’ composite index declined to 51.3 in September, down from 52.9 the prior month and sharply undershooting the expectations’ of economists polled by Reuters, wrote.

The manufacturing PMI fell to 50.3, while services was at a four-month low of 51.6.

Simmering trade tensions and weak global growth have dragged on Europe’s manufacturers throughout this year, leaving the services sector propping up the continent’s wider economy.

France’s manufacturing sector has been a comparative bright spot in Europe but has still been stuttering just above the 50 line that separates expansion from contraction. But as exports only account for around 30 percent of the French economy, the country has held up better than Germany, which is on the brink of a recession.

“As has been the trend in recent months, service sector resilience is supporting growth in the wider economy,” said IHS Markit economist Eliot Ker.

“However, with services firms registering their slowest rise in activity since May, fears of negative spillover effects from the manufacturing sector are coming to fruition.”

PMI figures for Germany were due to be released shortly after the French data.

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