Economic IndicatorsTop News

French business activity crashes to new record low in April: PMIs

imageEconomic Indicators8 hours ago (Apr 23, 2020 03:20AM ET)

(C) Reuters. FILE PHOTO: An employee works on the automobile assembly line of Bluecar electric city cars at Renault car maker factory in Dieppe, western France

PARIS (Reuters) – French business activity has plunged even more than expected this month to hit a new record low as a nationwide lockdown shuttered shops and factories across the euro zone’s second-biggest economy, a survey showed on Thursday.

Data compiler IHS Markit said its preliminary purchasing managers’ index (PMI) for April dropped to 11.2 from 28.9 in March, hitting the lowest reading on records going back to 1998.

The result, miles below the 50-point threshold denoting growth in activity, not only fell far short of the 26.0 points expected on average in a Reuters poll, but was well down from even the lowest forecast of 18.5.

Activity has ground to a halt at many firms since a nationwide lockdown was imposed in mid-March to contain the coronavirus outbreak, plunging the economy into what the government expects to be France’s worst post-war recession.

Companies have since put more than 10 million people on state-subsidised furloughs or one out of two private sector workers, the Labour Ministry said on Wednesday.

With most hotels, restaurants and non-food shops closed, the service sector is bearing the brunt of the shutdown, with the PMI for the sector collapsing to 10.4 from 27.4 in March, well below the 25.0 economists had expected.

The manufacturing sector fared better, but its index fell nonetheless to a record low of 31.5 from 43.2 in March, worse than the 37.5 expected by economists.

The survey offered little hope of respite, with new orders and staff headcount both falling at historic rates in both services and manufacturing.

France’s lockdown is for now slated to run until May 11, but the government has warned that not all businesses are going to be able to re-open immediately.

French business activity crashes to new record low in April: PMIs

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!