French economy gets back to growth

The French economy has shown signs of continued growth in February since October 2022. The survey reveals the ease of inflation pressure and the job market improvement. The purchasing managers’ index (PMI) for France’s dominant services sector stood at 52.8 points in February, up from 49.4 in January. Any numbers above 50 mean rising activity. However, the sectors develop differently. For example, the manufacturing sector fell to 47.9 points from 50.5 in January, below the expected 50.8 points.

The flash metric for the French composite PMI also indicated a seven-month peak and the first time this index had been in the expansion area since October. France has the second biggest economy in Europe. Its recovery is a good sign for the overall European economic climate. 

The beginning of February survey revealed that the unemployment rate in France dropped to an almost 15-year minimum in the last quarter of 2022, while the French government claimed to expect inflation to ease only from the middle of this year onwards.