Private sector activity in France returned to growth in February after three months of decline thanks to services, according to the PMI index published on Friday by the S&P Global agency.
The composite index which measures this activity recovered to 51.7 against 49.1 in January, ie 0.1 point more than the “
Flash
” index published by S&P Global on 21 February.
A value above 50 of this index signals an expansion of activity, and a value below this limit a contraction.
“
This rebound in activity, however, was entirely based on the good performance of the services sector, with manufacturing production having on the contrary recorded its largest decline since October 2022
”, according to the agency’s press release.
S&P had published on Wednesday a decline in the index of manufacturing activity to 47.4, against 50.5 in January.
The French services sector experienced in February its “
first expansion in activity since October 2022, the increase in February also having been the most marked for seven months
”, notes S&P in its press release published on Friday.
Read alsoUkraine: Bercy invites French companies to mobilize to safeguard the country's vital infrastructure
“Rising” prospects
The index of activity in services, based on a survey of 400 companies, thus stood at 53.1 against 49.4 in January.
The latest data “
highlight a favorable evolution of the French economy, the solid growth of the services sector having made it possible to compensate for the weaknesses of the manufacturing sector
”, notes Joe Hayes, economist at S&P Global quoted in the press release.
But "
the prices paid by French service providers have again risen sharply compared to the previous month, and inflation shows no signs of abating for the time being
," adds Joe Hayes.
However, this situation does not seem very worrying for companies whose “
invoiced prices also posted their second largest historical increase in February, suggesting that their pricing power remains high
”.
The outlook for activity in services "
is on the rise
", with the companies surveyed "
counting in particular on an imminent recovery in demand to support the growth of their activity
", according to S&P, which adds that the degree of optimism is is nevertheless slightly down compared to January due to the high level of inflation.
For the private sector as a whole, while the prices paid "
continued to increase at a sustained pace, the inflation rate nevertheless fell back to a 12-month low, notably under the effect of a marked easing cost pressures in the manufacturing sector
”.