French Business Activity Rebounded

Data from HIS Markit showed that French business activity rebounded much more than expected in July with a rebound in the post-lockdowns service sector gained momentum.

IHS Markit reported that the preliminary PMI jumped to 57.6 from 51.7 in June, its highest level since January 2018. It came above analysts’ expectations of 53.5, according to a Reuters poll.

French business is recovering faster than expected since the country began easing the lockdown on May 11. The government of France set one of the most stringent lockdowns in Europe in mid-March and entered its worst recession since registrations began in 1948.

Services PMI jumped to 57.8 from 50.7 above expectations of 52.3. As for the Manufacturing PMI to 52.0 from 52.3 in June, a slight difference from expectations was 53.2.

Although the French economy is recovering faster than expected, French Finance Minister said that the economic data is still very fragile and predicted a contraction of 11% this year.