France Services PMI in June
According to data provided by Markit Economics, the final Markit France Services PMI (Purchasing Managers’ Index) stood at 56.9 in June 2017 compared to 57.2 in May 2017. That beat the initial estimate of 55.3.
A level above 50 indicates expansion in economic activity, while anything below 50 indicates contraction. The softer improvement in its services PMI is an increasing concern for France. It was mainly due to the following:
- Production volume and output showed weaker improvement in June 2017.
- New business orders showed improvement in June.
- Export orders rose at a weaker rate in June.
Performance of various ETFs in June
The iShares MSCI France (EWQ), which tracks France’s performance, fell 0.30% in June 2017. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) (EZU) (IEV) economic performance, fell 0.40% in June. The weaker performance in major Eurozone indexes in June is due to factors such as the UK election outcome, falling oil prices, and the hawkish tone from the ECB (European Central Bank) and the BoE (Bank of England).
In the next part of this series, we’ll analyze the Eurozone Services PMI for June 2017.