France private sector registers first growth since August 2024

France's private sector achieved its first growth in almost a year-and-a-half last month, a purchasing managers' index survey showed Wednesday, with the services economy shining.

The Hamburg Commercial Bank composite PMI surged to 50.4 in November, from October's tally of 47.7. The PMI moved above the 50 point mark for the first time since August 2024, survey publisher S&P Global said. The composite PMI beat the 49.9 point flash reading.

The composite reading is calculated using the manufacturing and services sector data.

The services sector led the charge, with the PMI jumping to 51.4 in November from 48.0 in October. It was similarly the first growth since August 2024. The service PMI topped the 50.8 estimate.

"Spurring growth in service sector output levels was a fresh rise in new business. Like activity, this marked the first monthly expansion since August 2024. Improvements in demand were reflective of increased appetite from both new and existing customers, according to qualitative evidence. That said, the upturn was only marginal overall," S&P Global said.

Numbers on Monday showed the manufacturing PMI fell to 47.8 points in November, in line with a flash reading, from 48.8 in October.

Hamburg Commercial Bank analyst Jonas Feldhusen said: "Finally, some positive news. For the first time in over a year, output in France’s private sector has increased. In November, the composite PMI climbed back above the growth threshold, driven by a notable rebound in services business activity. However, manufacturing remains a drag on overall performance, posting its steepest fall in nine months and widening the gap between the two sectors.

"The improvement in services is encouraging, yet it remains to be seen whether this is just a one-off uptick or the start of a sustained recovery. The coming months will provide clarity. At least, order intakes are moving in the right direction, with domestic demand improving and foreign orders stabilising."

The services PMI features a panel of 400 firms, with responses collected in the second half.