French March flash PMI grows, hints at growth in private sector output

France’s flash PMI data for March hints that the country’s private sector output grew in the month after declining in February. The Markit Flash France Composite Output Index rose 51.1 from February’s 49.3. Manufacturing and service sectors are hinted to have higher output, recovering from declines in February. That said, growth rates were slight in each case. New business received by French private sector firms returned to growth in March. The recent growth, although marginal, was the sharpest since November 2015.

New work growth was focused on the service sector, where growth rate accelerated to a four-month high. In contrast, manufacturers hinted at a sharp drop in new orders, with the latest decline the most marked since August 2015. Meanwhile, French private sector employment grew for the third continuous month in March. However, the pace of job creation was marginal overall. Meanwhile, service providers hinted at a small rise in staffing levels, whereas manufacturers recorded a drop for the first time in four months.

In the month, outstanding business in the country’s private sector grew, after a small drop in February. The growth rate was the fastest in five months, although modest overall. Meanwhile, service providers recorded an increase in backlogs of work, whereas manufacturers did not note any change.

Input prices faced by France’s private sector firms increased in March after remaining unchanged in the prior survey period. Even though the rate of cost inflation quickened to a five-month high, it was modest overall. Meanwhile, service providers recorded the quickest rise in input prices since October 2015, whereas manufacturers hinted a sharp decline in just over a year.

Prices charged by private sector firms in France continued to decline in March. Even though the rate of decline has been easing since February, it remained marked overall. Manufacturing and service sectors recorded lower selling prices, with the latest reductions marked in each case.