France’s services PMI in May
According to data provided by Markit Economics, the final Markit France services PMI (purchasing managers’ index) stood at 57.2 in May 2017—compared to 56.7 in April 2017. The PMI was below the initial estimate of 58.0.
Improved performance in France’s services PMI was mainly due to the following:
- Production volume and output improved in May 2017.
- New business orders showed solid improvement in May 2017.
- Export orders rose at a higher rate in May 2017 as overseas demand picked up.
Performance of various ETFs in May
The iShares MSCI France ETF (EWQ), which tracks France’s performance, rose 4.6% in May 2017. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) (EZU) (IEV) economic performance, rose 4.6% in May 2017.
France’s business environment is getting a boost after the country’s presidential election. Emmanuel Macron’s win could be an important driver for its economy. Proposed reforms in various business policies and proposed tax exemptions for local housing could be positive steps for the economy. Recently, President Macron presented a clean politics bill, which aims to remove corruption from the country’s politics. The bill indicates that President Macron’s future steps might attract investors.
In the next part of this series, we’ll analyze the Eurozone’s services PMI in May 2017.