France's Private Sector Contraction Gets Worse

France's Flash PMI fell to a 2-month low of 47.6 in February, which suggest private sector activity is contracting further.

Regarding the sub-indexes:

• Flash France Services Activity Index falls to 46.9 (48.9 in January), 9-month low
• Flash France Manufacturing Output Index rises to 50.5 (48.8 in January), 7-month high
• Flash France Manufacturing PMI drops to 48.5 (49.3 in January), 2-month low

"French private sector firms reported a slightly sharper decline in output during February, largely reflecting weakness on the services side," said Markit economist Jack Kennedy.

But the details of the report weren't all bad.

"However, the data did reveal some positive developments, namely a return to growth of manufacturing production and another marginal rise in new export orders. Moreover, service providers' confidence rose to a 23-month high, with a number of panellists indicating that they had been innovating on new products which are now close to market, resulting in a more bullish outlook for the sector."