French service sector expands the most in the past 2 years

The HCOB France service sector PMI for 2024/8 rose to 55.0, up from 50.1 the previous month, and exceeded market expectations of 50.3.

This was the second consecutive month of expansion, and it was the rapid increase since 2022/5.

French service provider activity has increased significantly and reached its fastest pace in the past two years.

According to anecdotal evidence, an increase in production volume is often due to an increase in the number of customers.

Demand for factory orders also increased again, and the growth rate was the fastest in the past 16 months.

Meanwhile, employment continued to increase, albeit slightly, and the pace was the weakest since January.

As for prices, input costs rose more moderately, but production costs rose at a stronger pace over the middle of the third quarter.

Finally, service providers maintained expectations for activity growth, but positive sentiment fell to a nine-month low.

Source: S&P Global