France Services PMI in January
According to data provided by Markit Economics, the final Markit France Services PMI (Purchasing Managers’ Index) improved marginally in January 2018 compared to December 2017. It was 59.2 in January compared to 59.1 in December. The figure was slightly below the initial estimate of 59.3.
The performance of the France Services PMI in January was mainly due to the following:
- Production volume and output rose at a faster rate in January 2018. It was the 19th consecutive month of expansion in services activity.
- New business orders rose the most since May 2011.
- Employment growth in the services sector rose for the 13th consecutive month.
Performance of ETFs in January
The iShares MSCI France ETF (EWQ), which tracks France’s (PX1-INDEX) equity market performance, rose 6.7% in January 2018. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (N100-INDEX) equity market performance, rose 5.6% that month.
Improving services and manufacturing activity is a positive sign for France. The better business climate under President Emmanuel Macron and a lower interest rate are helping the business climate. Consumer confidence is also strengthening gradually. However, rising geopolitical issues could hamper the overall Eurozone economy.
In the next part of this series, we’ll analyze the services PMI for Spain in January 2018.