Investing.com - French private sector activity continued to expand in August, boosting the outlook for the euro zone’s second largest economy, according to data released on Wednesday.
The preliminary reading of the Markit services purchasing managers’ index dipped to 55.5 this month from 56.0 in July. Economists had forecast a slight decrease to 55.8.
The manufacturing PMI rose to 56.2, compared to expectations for 54.5 and from 54.9 a month earlier.
While growth in service sector activity was softer for the third consecutive month the rate of expansion in manufacturing production was the sharpest in almost six-and-a-half years.
The composite output index, which measures the combined output of both the manufacturing and service sectors came in at 55.6 this month, unchanged from July beating expectations for 55.5.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
"The latest data paint another positive picture of the French private sector economy, with further strong expansions in both new business and output. The data are particularly promising for the manufacturing sector, with output and new order growth at multi-year highs," said Alex Gill, economist at survey compiler Markit.
“Another sharp rise in private sector employment continued to be a key takeaway from the latest survey. Indeed, with capacity pressures intensifying, signs are that unemployment will continue to decline in the third quarter.”