Activity in the French private sector grew at its fastest pace in 37 months in November, a key survey showed today, in a sign that economic recovery will continue in the fourth quarter.
The Markit/CDAF flash composite purchasing managers' index (PMI), which combines data from both the manufacturing and services sectors, rose to 59.8, its highest since October 2006, from 58.6 the previous month.
It was the fourth consecutive month that the index has remained above the 50 mark separating growth from contraction.
"The latest data confirm the continued recovery of the French private sector in November," said Paul Smith, senior economist at Markit.
"However, there remains concern that companies continue to use heavy price discounting to secure new business as levels of market activity remain well below those seen pre-crisis," he said.
The flash manufacturing PMI fell to 54.2, a two-month low, after a final reading of 55.6 in October.
Although manufacturing output increased at a weaker pace than in October, it still grew at a rate that was unmatched in the previous three years.
The flash services PMI rose to 60.4, at its strongest rate in 37 months, after hitting 57.7 in October.
In line with recent trends, growth of output was supported once more by rising levels of incoming new business.
Continued gains in new orders led to a third successive monthly increase in backlogs of work, suggesting the continuation of emerging capacity pressures in the French private sector.
Payroll numbers fell but the rate of contraction was the lowest in a year. Companies were still reporting on the non-replacement of leavers and company restructuring as reasons for reduced employment.
The French economy grew by 0.3 per cent in the third quarter of 2009, at the same rate seen between April and June, lifted by buoyant exports.
Reuters