France services PMI slightly crawls up in July, stays higher than consensus

Services Purchasing Managers’ Index (PMI) in France during the month of July crawled up, staying higher than what markets had initially expected, offsetting ongoing manufacturing weakness, according to a private survey results released Wednesday.

France’s Purchasing Managers' Index (PMI) for services rose in July to 50.5 from 49.9 in June, better than a preliminary reading of 50.3, data released by Markit showed Wednesday. The index remained slightly above the 50-point mark that separates expansion from contraction.

Markit's overall PMI index, which includes the services and manufacturing sectors, rose to 50.1 from 49.6 in June, slightly better than the 50.0 originally reported. However, it did not materially change the picture of recent sluggish business growth, with the composite PMI index having oscillated around the 50-point mark since the start of 2016.

"There were slight increases in new business and employment evident in the latest survey data, but overall little sign of any change to the subdued pattern seen throughout the year to date," said Jack Kennedy, Economist, Markit.

Meanwhile, Euro zone’s composite PMI, which combines services and manufacturing, rose to a six-month high of 53.2 in July, up from an earlier estimate of 52.7, and above June’s 52.8 reading.