The growth of private sector activity in France fell again in October, still hampered by shortages, according to a provisional estimate released Friday by the IHS Markit cabinet.
The composite Flash index of global activity fell to 54.7 points in October, from 55.3 points in September, reaching its lowest level in 6 months, according to data collected from a panel of companies.
An index above 50 indicates an expansion of activity while an index below 50 indicates a contraction.
Read alsoIpsos raises its growth forecast after a better-than-expected summer
If this figure shows "
a strong growth rate
" of the French economy, the downturn is mainly due to the supply difficulties of the manufacturing industry, whose production fell in October, a first since January 2021.
“
While until now input shortages have mainly translated into price increases, they are now having a tangible impact on production levels and order books as companies do not have the necessary stocks. to the production of their manufactured goods and customers finding themselves forced to cancel or postpone their orders,
”said Joe Hayes, economist at IHS markit, quoted in the press release.
Highest level for 17 years
The rate of cost inflation reached its highest level in 17 years, driven by higher raw material prices, rising fuel costs and rising labor costs.
Growth also slowed slightly in construction, while conversely, activity in services increased significantly in October, supporting the general growth in activity.
See also France: inflation accelerates a little more than estimated at 2.2% over one year in September
Services are benefiting from the easing of travel restrictions and growth in the volume of new business in many sectors, although it remains "
very vulnerable to the introduction of new health measures
", according to the cabinet.
"
Among the various recovery scenarios described by different letters of the alphabet, it seems that France is moving towards a recovery in K, characterized by widening inequalities, especially between sectors of activity,
" says Joe Hayes.
