France flash manufacturing PMI in August
According to data provided by Markit Economics, the flash Markit France manufacturing PMI (purchasing managers’ index) stood at 55.8 in August 2017 compared to 54.9 in July 2017. The August reading met the market estimate of 54.5.
France’s flash manufacturing PMI indicated an expansion in manufacturing activity in August. A level above 50 indicates expansion in economic activity, while anything below 50 indicates contraction.
The performance of France’s manufacturing PMI in August was mainly due to the following:
- Production volume and output rose at a stronger rate in August 2017.
- New business orders and export orders showed a solid improvement in August 2017.
- Employment in the manufacturing sector rose in August 2017.
Performance of various ETFs in August
The iShares MSCI France ETF (EWQ), which tracks France’s performance, rose 0.3% so far in August 2017. The iShares MSCI Eurozone ETF (EZU), which tracks the performance of the Eurozone (HEDJ) (FEZ) (IEV), fell marginally during the month.
Improvement in both domestic demand and international demand is driving the manufacturing activity in France. The change in the business environment in France under President Emmanuel Macron is also another important factor that’s driving investor’s sentiment.
In the next part of this series, we’ll analyze Germany’s flash manufacturing PMI in August 2017.