French PMI Lower After Paris Attacks

Signs that the attacks in Paris have impacted France’s service sector have emerged in the latest survey by Markit.

The firm said a rapid fall-off in trade was behind its index falling from 52.7 in October to 51.3 in November.

“We think the key reason for the slowing in services growth is due to the attacks,” Chris Williamson, Markit’s chief economist said.

Markit said 60% of survey responses from services sector firms were received after the 13 November attacks.

The services index remains above 50, meaning that it is continuing to grow, but at a slower pace.

“Clearly there’s been a cut in footfall and any sort of feel-good factor amongst consumers in the wake of the horrific events.

“But history does tell us that these events tend to have a very short-lived impact,” added Mr Williamson.

The “flash” manufacturing PMI rose to a 19-month high, and Mr Williamson said the rest of the survey data suggested “a more encouraging picture of France continuing to lift itself out of its gloom”.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza