France’s services sector saw growth in July supported by the upcoming Olympic Games, according to the initial findings from the monthly PMI survey conducted by S&P Global and HCOB on Wednesday. However, there was a continued decline noted in the manufacturing sector.
The flash Purchasing Managers’ Index (PMI) for the services sector rose to 50.7 in July from 49.6 in June, surpassing analysts’ expectations of 49.8. The 50 mark in PMI separates expansion from contraction in economic activity.
Conversely, the PMI for the manufacturing sector decreased to 44.1 in July compared to 45.4 in June, falling short of the consensus forecast of 45.8.
The composite PMI, which combines both services and manufacturing sectors, reached 49.5 in July, up from 48.8 in June and higher than the average forecast of 49.0.
Norman Liebke, an economist at HCOB, attributed the uptick in service sector activity partly to the upcoming Olympic Games, scheduled from this Friday until August 11.
“The Olympics are boosting the French economy. Business activity among French service providers has risen for the first time in three months. Anecdotal evidence indicates this is partially due to the Olympics,” Liebke commented.