French manufacturing increased in wake of Paris attacks, survey finds

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23rd November 2015 13:33 - Industrial

A recent survey has revealed that growth within the French manufacturing sector has picked up in the wake of the tragic Nov. 13th Paris French manufacturing increased in wake of Paris attacks, survey findsattacks, whereas the services sector has slowed. However, the researchers found that the increase in manufacturing has helped to keep the private sector growth positive.

Conductor of the survey, Markit, revealed that activity within the private sector has increased for the 10th consecutive month, with the flash composite Purchasing Managers Index for November coming in at 51.3 for the manufacturing and services sectors combined a decline from the 52.6 in October.

When it came to the dominant services sector, the flash reading was 51.3 in November, a decline from October’s 52.7. November’s reading was found to be similar to that of summer 2015. However, despite the decrease in November, any reading over 50 indicates growth.

Chris Williamson, Chief Economist at Markit, said of the survey findings:

"We think the key reason for the slowing in services growth is due to the attacks. Clearly there's been a cut in footfall and any sort of feel-good factor amongst consumers in the wake of the horrific events,"Williamson said. "But history does tell us that these events tend to have a very short-lived impact,"

The manufacturing index for France increased to 50.8, the highest figure since April 2014 and up from October’s 50.6.

Williamson added: "The rest of the survey data points to a more encouraging picture of France continuing to lift itself out of its gloom,"

Over the last few quarters, business surveys have indicated gradual improvement within French economic activity; however, the attacks in Paris will most likely impact the tourism and retail industries in the fourth quarter of 2015.

The subindex from Markit for business expectations within the services sector decreased to 59.1 in November, from Octobers 59.9. However, the figure still remains above the figure for expansion.

Of the respondents, 60 per cent of the responses from companies within the services sector, and 52 per cent of those in the manufacturing sector, were gathered after the terrorist attacks which took place on the 13th November at several cafes, the Bataclan concert hall and the Stade de France. The attacks killed 130 people.

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