The rate of growth in the French service sector expanded at a strong rate during September as demand continued to rebound close to pre-pandemic levels.
Source: IHS Markit.
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Increased staffing costs led to increased inflationary pressures as rising raw material prices increased the output prices.
The seasonally adjusted France Service Business Activity moved fractionally lower in September to 56.2, from 56.3 in August. The latest data marked another step down in the pace of expansion, which rose to a peak high at a 41-month high in June.
Joe Hayes, Senior Economist at IHS Markit, stated that France’s service sector continued to drive the wider economic recovery in September.
The Composite Index, which measured the average of the Manufacturing Output Index and the Services Business Activity Index, posted 55.3 in September, down from 55.9 in August.
The Composite data signaled the slowest expansion in new orders for five months during September amid a wider weakening in demand growth across manufacturers and service providers.