France Services PMI for April Falls below the Estimate
France Services PMI in April
According to data provided by Markit Economics, the France Services PMI (Purchasing Managers’ Index) was 56.7 in April 2017 compared to 57.5 in March 2017. That was below the initial estimate of 57.7. However, in March, the France Manufacturing PMI saw a huge improvement over February, with the highest expansion since May 2011.
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Despite the lower services PMI, it’s still in the expansion zone. A level above 50 indicates expansion in economic activity, while anything below 50 indicates contraction. The service sector is an important component of France’s GDP.
A weaker performance in the France Services PMI in April 2017 was mainly due to the following:
- Production volume and output showed weaker improvement.
- However, new business orders continued to increase.
- Export orders rose at a slower pace.
Performance of ETFs in April
The iShares MSCI France (EWQ), which tracks France’s performance, rose 6.0% in April 2017. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) (EZU) (IEV) economic performance, rose 4.3% in April 2017.
In the next part of this series, we’ll analyze the services PMI for the Eurozone in April 2017.