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France: activity growth accelerates in November

2021-11-23T10:04:17.134Z


Acceleration causes inflation. But manufacturing activity is on the decline this month.


Growth in private sector activity in France accelerated in November thanks to services, according to a provisional index released Tuesday by IHS Markit.

Read alsoThe post-Covid growth rebound will be stronger than after the 2008 crisis, according to a study

Despite a decline in manufacturing production, the Flash index which measures this activity reached its highest level in four months, at 56.3 against 54.7 in October, specifies the cabinet.

A value above 50 indicates an expansion of activity, a value below this level indicates a contraction.

After four months of slowing down

The increase in activity in November "is

based on the largest increase in activity recorded in the service sector for almost four years, with manufacturing output falling for a second consecutive month

", explains Markit in his press release. "

Shortages of raw materials, lengthening of input delivery times and weak demand have contributed to the decline in production by manufacturers while in the service sector, the rise in new business and recovery efforts have boosted activity levels

, ”the cabinet detailed. The acceleration in growth "

puts an end to four consecutive months of slower growth,

" according to Markit.

Read alsoInflation weighs on European recovery

But this acceleration is causing inflation in a context of tensions on the supply chains and "

the prices charged by companies recorded their biggest increase in ten and a half years

".

In addition, "

the volume of pending work having indeed recorded its strongest expansion for three months

", companies "

again reinforced their workforce in November

".

But the French economy is weakened by the predominance of the service sector, more exposed to possible new restrictions due to the health crisis, according to IHS economist Markit Joe Hayes.

"

The obstacles facing the manufacturing sector unfortunately put the French economic recovery in a precarious situation

," he said.

Joe Hayes notes that "

a number of health restrictions are currently being reintroduced in other European countries

", even if "

the French authorities seem for the time being to rule out the possibility of introducing restrictions themselves

".

Source: lefigaro

All business articles on 2021-11-23

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