IHS Markit publishes French and German purchasing managers’ indices, the French index shows a particularly favorable picture, the manufacturing index stood at 54.6 points in November, up from 53.6 points in the previous month and well above the growth threshold of 50 points . The manufacturing index also came as a positive surprise, with analysts expecting a 52.8-point index. The global supply shortage does not appear to have been a serious problem in the French manufacturing industry, and business leaders are likely to see the positive effects of increased demand as greater than the negative effects of supply problems and energy shortages.
The manufacturing index came as an even bigger surprise, with the index standing above 58 points in November, rising further from 56.6 points in October. Here, too, analysts expected a slowdown of 55.5 points, so despite the upswing in epidemic data, the performance of the service sector appears to be strong. The composite index stood at 56.3 points in November. French indices have been in steady growth since the third wave of epidemics.
Germany is also performing well
Similarly strong data came from Europe’s largest industry. The German manufacturing performance in November is also in the growth range, with the manufacturing BMI in November standing at 57.6 points. It stood at 57.7 points in the previous month, meaning we see some deceleration, while analysts expected a more marked deceleration, a BMI of 56.7 points.
The service sector also stood above the 50-point mark, standing at 53.4 points in November – after a 52.4-point increase in October, this is projected to be higher, according to company executives. The Reuters consensus was 51.5 points, so the good performance of the service sector was also a positive surprise.
According to French and German data, the European economy is performing strongly in November, with both the service sector and industry in good shape. BMI’s forecasting power is severely limited, but concerns like the slowdown in China and the US do not yet threaten the eurozone, and the currency area’s economy may continue to grow steadily in the fourth quarter.
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Source: Portfolio.hu – Gazdaság by www.portfolio.hu.
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