French Private Sector Contracts Faster Than Expected In September
The French service sector contracted at a faster pace than initially estimated in September, final data released by Markit Economics showed Wednesday.
The seasonally adjusted composite output index, which measures activity in both the manufacturing sector and the services sector, dropped to a forty-two month low of 43.2 in September from 48 in August. The latest figure was lower than 44.1 seen in the preliminary estimates. An index reading below 50 indicates contraction, while one above suggests growth.
The latest reading was indicative of a substantial decline in activity and the steepest rate of contraction since March 2009.
At the same time, the purchasing managers' index for the service sector came in at 45 in September, up from 46.1 initially estimated. In August, the reading was 49.2. Service sector business activity fell at the fastest rate since October 2011.
The latest fall in service sector activity reflected a sharp decline in incoming new work. In line with the slump in orders, companies adjusted staffing levels down, leading to an accelerated drop in employment.
Input prices faced by service sector firms rose at a sharper rate. Meanwhile, output charge discounting gathered pace, highlighting a deepening squeeze on companies' margins.