Photographer: Balint Porneczi/Bloomberg

markets

French Momentum Rebounds as Economic `Renaissance' Set to Last

  • Composite PMI rose to 56.9 in April from 56.3 in March
  • Gauges for both manufacturing and services increased

French private-sector growth picked up at the start of the second quarter after a soft patch early in the cast a shadow over the country’s economic strength.

A composite Purchasing Managers’ Index rose to 56.9 in April from 56.3 the previous month, IHS Markit said on Monday. Gauges for manufacturing and services rose, with new orders increasing for the 22nd month.

The report snaps a string of disappointing data that suggested the euro area’s strongest expansion in a decade could be coming to an end. Ahead of a European Central Bank policy meeting this week, President Mario Draghi has said that momentum is expected to continue, notwithstanding trade risks and signals that the growth cycle has peaked.

“The French private sector remained firmly in expansionary mode,” said IHS Markit economist Alex Gill. “After having shown signs of slowing in recent months, the data will buoy hopes that the renaissance in the French economy has far from run its course.”

Preliminary readings for Germany and the euro area are due at 9:30 a.m. and 10:00 a.m. Frankfurt-time, respectively.

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