European Economic News

French Private Sector Slump Eases More Than Estimated In April

France's private sector economy contracted further in April, but at a slower rate than initially estimated, final data released by Markit Economics and CDAF showed Monday.

The composite output index increased to a four-month high of 44.3 in April from 41.9 in March, which was the lowest reading in forty-nine months. The initial estimates were for a reading of 44.2 in April. An index below 50 shows contraction in the sector, while one above suggests growth.

Across the private sector as a whole, employment decreased at the fastest rate in three month in April. Output prices in the private sector economy fell for the twelfth consecutive month, and at a solid pace.

At the same time, the seasonally adjusted business activity index for the service sector moved up to a four-month high of 44.3 from 41.3 in March. The flash estimates had showed a reading of 44.1.

"Persistently weak demand continued to weigh on new business inflows, leading companies into a further round of job shedding," Markit Senior Economist Jack Kennedy said.

"While confidence over future activity levels improved modestly, optimism remains far below the long-run average for the survey, as firms generally expect the difficult operating environment to persist over the coming year."

by RTTNews Staff Writer

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