Economics

French Manufacturing Propels Economic Growth as Services Slow

  • PMI industry index rose to 55.8 in August from 54.9 in July
  • IHS economist sees signs unemployment will continue to decline

French manufacturing unexpectedly expanded at the fastest pace since 2011.

Photographer: Marlene Awaad/Bloomberg
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French manufacturing unexpectedly expanded at the fastest pace since 2011, underpinning a recovery in the euro area’s second-largest economy that was long in the making.

A Purchasing Managers’ Index for the industry rose to 55.8 in August from 54.9 in July, according to IHS Markit. Economists surveyed by Bloomberg predicted the gauge would signal a slowdown in factory activity. A PMI for services fell to a seven-month low of 55.5.