French manufacturing sector contracted at the fastest pace in 38 months in July, flash survey results from Markit Economics showed Tuesday.
The purchasing managers' index for the manufacturing sector fell to 43.6 in July from 45.2 in June. Economists expected an increase to 45.5. This was the lowest reading in 38 months.
The manufacturing output index dropped to a 39-month low of 43.3 in July from 46 in June. An index reading above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.
Meanwhile, the service sector witnessed a surprise rebound in activity during the month with the relevant index rising to a six-month high of 50.2 in July from 47.9 in the previous month. This was forecast to fall to 47.5.
The composite output index, that measures performance of both manufacturing and services, rose to a four-month high of 48 in July from 47.3 in June.
by RTT Staff Writer
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