France’s private sector unexpectedly gained speed in August as solid performance in services was complemented by a return to growth in manufacturing.
IHS Markit’s Purchasing Managers’ Index rose to 52.7 from 51.9 in July, defying economists’ predictions for a slight weakening. The increase was driven by a broad-based pickup in demand, with new orders expanding at the fastest pace since November.
Signs of a recovery in Europe’s second-largest economy, particularly in manufacturing, will be welcome news to policy makers hoping for a growth rebound in the euro area toward the end of the year. Yet much will hinge on whether industrial giant Germany and the rest of France’s neighbors also see a strengthening in activity.
Data for Germany are due at 9:30 a.m. Frankfurt time. Gauges for the euro area will be released 30 minutes later.
Source : Bloomberg