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French business growth expanded in October - PMI

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By Reuters
French business growth expanded in October - PMI
Businessmen walk on the esplanade of La Defense financial and business district in Puteaux, near Paris, France, May 16, 2018. REUTERS/Charles Platiau   -   Copyright  CHARLES PLATIAU(Reuters)

PARIS, Oct 24 (Reuters) – - French business activity grew in October from the previous month, a survey showed on Wednesday, as strength in services offset weakness in manufacturing in the euro zone’s second-biggest economy.

Data compiler IHS Markit said the preliminary reading for its composite purchasing managers index rose to 54.3 points in October from a final reading of 54.0 points for September, beating a Reuters forecast for a measure of 53.8 points.

IHS Markit’s chief business economist, Chris Williamson, said the figures suggested France was on track for fourth- quarter economic growth of 0.4 percent, although the weakness in manufacturing, caused partly by trade wars, was a worry.

“Overall, the composite number suggests the French economy is growing at a reasonable rate at the start of the fourth quarter,” Williamson said. “Our concern is that future growth will wane in services unless you see an upturn in manufacturing.”

France eked out quarterly growth of only 0.2 percent in the first two quarters of the year as strikes curbed activity, while warm spring weather kept energy spending low.

Earlier this month, the country’s official statistics body, INSEE, said French economic growth would rise to 0.5 percent in the third quarter and come in at 0.4 percent in the final three months, while tax cuts could give a further fillip.

- Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.

(Reporting by Sudip Kar-Gupta, editing by Larry King)