France Manufacturing PMI for December
According to data provided by Markit Economics, the final Markit France Manufacturing PMI (Purchasing Managers’ Index) stood at 53.5 in December 2016 compared to 51.7 in November. That figure met the initial estimate of 53.5.
The France Manufacturing PMI for October 2016 showed a first-time expansion after a contraction for seven consecutive months. A level above 50.0 indicates expansion in the economy, while anything below 50.0 indicates a contraction. The December manufacturing PMI was the highest move since May 2011.
Improvement in the France Manufacturing PMI for December 2016 was mainly due to the following:
- Production volume and output increased at a stronger rate than in November.
- Export orders and new orders rose at a higher rate.
- Employment growth showed a stronger move.
Performance of ETFs in December
The iShares MSCI France (EWQ), which tracks France’s performance, rose 5.0% in December 2016. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (IEV) (EZU) economic performance, rose 4.5% in December 2016.
France’s economy also got a major shock from the Brexit (EWU) vote in June 2016. However, the economy is showing gradual improvement. The manufacturing PMI figure shows that domestic demand is improving.
In the next part of this series, we’ll analyze the German Manufacturing PMI for December 2016.