French services rebound, German factories face a supply crisis


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French services returned to growth in April while the German manufacturing sector – the engine of the nascent recovery in Europe – eased due to delays in supplier deliveries.

Indices from purchasing managers from the two largest euro area economies showed companies were confident at the start of the second quarter that they could end the pandemic crisis soon, even as lockdowns persist amid continued infections. Student.

“The short-term outlook continues to strengthen for French companies,” said Eliot Kerr, economist at IHS Markit. “Previously, growth had remained elusive due to a continuing decline in the service sector.”

France’s services PMI hit an 8-month high in April, while a tightening of coronavirus restrictions in Germany dampened the sector’s rebound that began in March.

German factories, meanwhile, have seen their stock of orders increase at the fastest rate in a decade. Shortages of raw materials and freight capacity have pushed input costs to their highest since 2011 and output prices to their highest in more than two years.

April March
German manufacturing PMI 66.4 (65.8 est.) 66.6
German services PMI 50.1 (51.0 est.) 51.5
GERMAN COMPOSITE PMI 56.0 (57.0 est.) 57.3
French manufacturing PMI 59.2 (59.0 est.) 59.3
French services PMI 50.4 (46.7 est.) 48.2
FRENCH COMPOSITE PMI 51.7 (based 49.4) 50.0

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