French services sector grew in Feb after three months of contraction - PMI

Kitco Media
By Reuters
Published:
Updated:
Reuters
PARIS, March 3 (Reuters) - France's dominant services sector expanded in February after three months of decline as a key business indicator reached its best reading since July, a monthly survey showed on Friday.


S&P Global's final services purchasing managers index (PMI) for February reached 53.1 points - slightly better than a flash estimate of 52.8 points and sharply up from the 49.4 points in January.


"The expansion was solid and a marked turnaround", said S&P Senior Economist Joe Hayes, citing improving underlying demand and suggestions that, despite lower real incomes hit by inflation, private consumption and business expenditure is showing resilience.


"Service providers responded to the intensification of cost pressures by raising their charges more aggressively during February", S&P said.


However, the improvement in overall demand was curbed by a further marked deterioration in sales to clients abroad as new export business fell at the quickest rate since December 2020.


The Bank of France earlier this month flagged it would slightly raise its growth forecast for the French economy for 2023 on March 20 from a 0.3% growth forecast made in December.


S&P Global's final composite PMI number, which comprises both the services and manufacturing sectors, rose to 51.7 points from 49.1. (Reporting by Tassilo Hummel; Editing by Toby Chopra)

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