What is the French Flash Services PMI?
PMI stands for Purchasing Managers' Index. The Flash Services PMI number is based on surveys of over 300 business executives in private sector services companies. It illustrates how active the purchasing managers in the services sector are. This data is released each month. It is a good indicator to compare how the industry is performing compared to the previous month.
What are the Expectations for the French Flash Services PMI?
The forecast for the French Flash Services PMI is 59.6, which is higher than the previous release. From this, we can see that the experts are positive about the situation in France. The expectation is above 50, which means the economy could be in recovery. What is even more impressive is that for the previous three months the actual figure being released has always been higher than what is expected. Will the streak continue?
Professional Insight
While things look to be recovering in France, there is a major threat on the horizon, and that is the Delta COVID-19 strain. Vaccination programs in France and Europe, in general, are advanced and could help prevent the spread of the new variant. We need to be very careful here because anything similar to the fall we experienced last year would be detrimental to the recovery efforts. “We are defeating the virus but we must certainly not give the Indian variant a hold so that it starts a new epidemic wave,” French Health Minister Olivier Véran said last week.
What happens if...
Usually, if the data is greater than 50, it indicates that the industry is expanding, or thriving. So people would like to see a number above 50. The market will take that as a good sign of economic growth.
What happens if…
If the figure is lower than 50, it indicates a contraction or a decrease. In this situation, we would like to be more cautious about any investment. The lower figure should be taken as a bearish signal for the EUR.
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