French business activity boosted in June by booming services -PMI
PARIS, June 23 (Reuters) - French business activity edged higher in June, although not as much as expected, as the service sector boomed following the latest easing of coronavirus restrictions, a survey showed on Wednesday.
Data compiler IHS Markit said its preliminary composite Purchasing Managers' Index (PMI) nudged up to 57.1 from 57.0 in May, falling short of economists' average expectation for a reading of 59.0 in a Reuters poll.
The reading was nonetheless the highest since last July and was comfortably above the 50-point threshold dividing an expansion in activity from a contraction.
The French government gradually lifted a curfew and eased restrictions on wearing masks this month as new infection rates and pressure on hospitals continued to fall after a nationwide lockdown ended last month.
"With vaccination rates on the rise, survey data suggest that firms are becoming more confident that the stage is set for an economic recovery," said IHS Markit senior economist Joe Hayes.
"Employment levels picked up in June as firms recorded another month of exceptional demand growth."
A preliminary PMI for the dominant service sector rose to 57.4 in June from 56.6 in May, hitting its highest level since January 2018 but missing economists' expectations for a reading of 59.4.
The flash PMI for manufacturing fell to 58.6 from 59.4 in May, just short of economists' expectations for a reading of 59.0, IHS Markit said. (Reporting by Leigh Thomas; Editing by Catherine Evans)
