France private sector economy gathered some momentum in August

Preliminary PMI data across eurozone was released earlier on Tuesday by financial data company IHS Markit. A decent set of numbers were seen from France. While manufacturing is still in decline, the service sector is picking up the slack and overall economic growth is outpacing estimates by a significant margin.

Data showed that France manufacturing PMI came in at 48.5, lower than estimates of 48.8 and down from July's figure of 48.6. Services PMI surprised on the upside at 52, beating estimates and a July reading of 50.5. Overall composite PMI remained unchanged from July's figure at 51.6, beating forecasts of 50.5.

Moderate growth was seen in new business at companies, while firms indicated a return to job shedding in the latest month. While the French economy failed to gather momentum in the second quarter, the Bank of France expects growth to resume in the three months through September.

"France's private sector economy gathered some momentum in August, raising hopes of a pick-up in GDP growth after the stagnation seen in the second quarter," said Jack Kennedy, Senior Economist, IHS Markit on Tuesday.