France Services Activity Sees Strongest Expansion Since May 2022

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France Services Activity Expands at Fastest Pace Since May 2022

Strongest Growth in 10 Months

Business Activity Index Rises to 56.3

The French services sector experienced its strongest expansion in 10 months in January 2023, according to the latest Services Purchasing Managers' Index (PMI).

The PMI, a measure of business activity, rose to 56.3 in January, up from 54.7 in December. This marks the highest reading since May 2022.

The increase in the PMI suggests that the French services sector is continuing to recover from the impact of the COVID-19 pandemic.

• New orders increased for the sixth consecutive month.
• Backlogs of work rose at the fastest pace since April 2022.
• Employment increased for the third consecutive month.

However, the PMI also showed that input costs rose at a faster pace in January. This suggests that businesses in the services sector are facing inflationary pressures.

Overall, the latest PMI data suggests that the French services sector is recovering from the pandemic but is facing challenges from rising costs.

Source: Markit Economics

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