France Manufacturing PMI: Signaling Better Business Condition?
France Manufacturing PMI in January 2018
According to data provided by Markit Economics, the final France Manufacturing PMI (Purchasing Managers’ Index) stood at 58.4 in January 2018 compared to 58.8 in December 2017. It met the preliminary market estimate of 58.1.
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Although the France Manufacturing PMI is marginally lower than its 17-year high in December 2017, the business condition improved at a faster rate in January. The robust client demand from overseas and a stronger domestic demand are mainly helping France’s economic activity.
The performance in January was mainly due to the following:
- Production volume and output rose at a stronger rate in January 2018.
- New business orders and export orders rose at a slower pace in January 2018.
- Employment in the manufacturing sector rose at a slower pace in January 2018.
Performance of various ETFs in January
The iShares MSCI France ETF (EWQ), which tracks France’s performance, rose 6.7% in January 2018. The iShares MSCI Eurozone ETF (EZU), which tracks the performance of the Eurozone (IEV) (N100-INDEX), rose 7% that month.
Major ETFs of the Eurozone showed stronger performances in January 2018. However, investors remained concerned about rising uncertainty over the continuation of the memberships of major economies in the European Union.
In the next part of this series, we’ll analyze the Germany Manufacturing PMI for January 2018.