- Prior 53.1
- Composite PMI 52.7 vs 54.0 prelim
- Prior 51.7
Activity picks up as demand conditions improve but it is a marginal one after the revision lower. S&P Global notes that:
"March's PMI survey rounds off what can be considered a fairly positive opening quarter of 2023 for the French economy. Although manufacturing output continues to fall, two robust monthly expansions in services activity in February and March bodes well for the economic growth performance in the first quarter, although it remains to be seen if there will be any material impact from the recent social unrest across the country.
"The positive trend in the new orders index also suggests that underlying demand conditions, especially domestically, are beginning to improve despite the squeeze on finances caused by higher interest rates and elevated inflation.
"However, it's still unclear whether the positive momentum seen in February in March can be sustained through another quarter, particularly if other parts of the economy such as construction and manufacturing remain weak.
"The persistence of high inflation in France will also flag to the European Central Bank that their job is not finished yet. Increases in output prices and input costs remain stubbornly elevated, and improving activity and demand in the service sector is supportive of further price increases."
