Julien Manceaux, senior economist at ING, notes that the France’s manufacturing sector sentiment rebounded very slightly in January with PMI rising to 51.2 from 49.7 in December.
“A number under the 50.0 threshold signals a contraction in industrial activity. The details of another survey by INSEE this week showed that sentiment in industry stabilised in January, suggesting there was no further deterioration in order books and that recent output has been larger than anticipated. Inventories even went down in January.”
“This seems to be even more the case in the service sector for which PMI indicators today showed a further deterioration. At 47.5, it is the lowest level since 2014. The indicator was still above 55.0 in November. This reflects the current high level of anxiety shown by consumers in recent surveys, linked to the “yellow vest” protests.”