France's private sector slows down in November

Growth in France’s private sector slowed down in November, figures released on Monday showed.

The Markit flash France composite output index, which is based on approximately 85% of normal monthly survey replies, declined to a three-month low of 51.3 from 51.9 in the previous month.

Manufacturers and service providers reported weaker increase in activity during November, with some service providers reporting the terrorist attacks in Paris had a negative impact on trading.

The flash France composite output index also declined to a three-month low in November, slipping from 52.6 in October to 51.3, falling short of analysts’ expectations for a 52.5 reading, while the services activity index slid from 52.7 to 51.3 in November.

The figure missed analysts’ forecast for a 52.5 reading and represented a three-month low for the index, Markit said.

“While the longer-term economic impact following the attacks remains uncertain, PMI data suggest that GDP is on course to post another modest expansion in Q4 following the 0.3% growth reported in the third quarter,” said Markit’s senior economist Jack Kennedy.

However, new business in the private sector rose for the third consecutive month in November, as the rate of expansion hit the fastest pace since June, although manufacturers’ new export orders declined for the first time in three months and at their fastest pace since April.

Meanwhile, employment in the French private sector fell for the third consecutive month and input prices rose for a tenth successive month, although the latest rise was weaker that the one registered in October.

“Next month’s report will give a clearer picture of the hit to business sentiment from the Paris atrocities,” said analysts at Pantheon Macro.