French manufacturing PMI rises to 207 months high in December

French manufacturing activity measured by purchasing managers index (PMI) rose to 59.3 in December, according to the flash estimate from IHS/Markit research.

With manufacturing output rising to the highest level in last 208 months, the manufacturing PMI rose strongly marking one of the sharpest increases since the time series started in 1998.

While services PMI decelerated to 59.4 in December, the composite PMI combining data from both manufacturing and services sector inched down to 60.0 in December.

Key comment from Alex Gill, the economist at IHS/Markit and the author of the report:

• “Although dipping fractionally from November’s six-and-a-half-year high, the headline flash composite output PMI number remained among the highest recorded in the survey history during December and completes what has been a strong year for the French private sector economy."
• “Growth continued to be driven by rising client demand, which in turn led to another marked round of job creation. Given a further marked accumulation of unfinished work and robust business confidence, the French economy looks well-placed for further growth as we move into the new year."
• “The data were particularly encouraging for the manufacturing sector, which saw the steepest rates of output and employment growth since the summer of 2000. Meanwhile, the rate of increase in new export orders was the most marked in seven years as the sector remained the main beneficiary of a pick-up in global demand.”