France's private sector expanded at the quickest pace in over five-and-a-half years in January, driven by robust growth in services activity, flash data from IHS Markit showed Tuesday.
The composite output index climbed to a 67-month high of 53.8 in January from 53.1 in December. A reading above 50 indicates expansion in the sector.
The services activity index rose to 53.9 in January from 52.9 in December. This was the highest reading in 19 months. Economists had expected the index to increase to 53.1.
However, manufacturing growth eased slightly at the start of the year. The manufacturing Purchasing Managers' Index dropped to 53.4 from 53.5 in December. The score also matched consensus estimate.
New business received by private sector companies in France grew for the seventh month running in January. The rate of job creation was the sharpest in over five years.
On the price front, higher cost burdens were seen in both services and manufacturing sectors. Selling prices fell for the fifty-seventh consecutive month in January.
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