France's Oct services sector growth slowed by less than initially forecast -final PMI

November 04, 2022 09:51 AM CET | By Reuters

PARIS, Nov 4 (Reuters) - Growth in France's services sector slowed in October by less than initially forecast, a survey showed on Friday, although inflationary pressures continued to weigh on the euro zone's second-biggest economy.

S&P Global's final services purchasing managers index (PMI) fell to 51.7 points in October from 52.9 in September, although the final October figure was better than a flash forecast of 51.3 points.

Any reading above 50 points indicates growth.

The October final composite PMI - which includes both the services sector and the manufacturing sector - fell to 50.2 points from 51.2 in September, although that was also slightly better than a flash forecast for 50.0 points.

The growth in France's services sector contrasted with the country's manufacturing sector, where data earlier this week from S&P Global had shown that French manufacturing weakened in October by more than initially estimated.

"As the French manufacturing sector sinks deeper into contraction, the services sector has been left to maintain economic growth," said S&P Global Market Intelligence senior economist Joe Hayes.

"Although the demand trend has clearly deteriorated, ample order book volumes are helping to sustain growth. Backlogs rose again in October, and this has also helped companies keep the door open for new recruits," Hayes added. "The main challenge for the services sector is inflation. As client purchasing power is squeezed and real incomes fall, spending will come under pressure." (Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Top LSE Listed Companies