France PMIs continue to improve

The French PMI is now consistent and continues improving with an expansion in activity, above 50, while the service-related measure surged to 54.1, far above the break even mark and the strongest pace since 2011. 

Although these indicators have their flaws, this is consistent with the continuation in the recovery is what anticipated. If anything, it even puts a slight upward risk on our Q2 GDP growth projection (currently 0.4% qoq).

Meanwhile, business expectations climbed to a 39 month high, suggesting that the positive momentum should be sustained.