French Economy Slowed After Attacks, Surveys Show
23 November 2015 - 8:40PM
Dow Jones News
France's economy slowed following the Nov. 13 terror attacks in
Paris and a subsequent tightening of security around the country,
but it continued to grow, according to surveys released Monday.
The surveys are the first national measure of economic activity
released since the attacks, and the bulk of responses from
purchasing managers at manufacturers and service providers came in
the days after the assaults at the Bataclan concert hall and other
locations claimed 130 lives in the French capital. Markit said
responses were received between Nov 12 and Nov. 20.
The headline measure of activity based on the survey, and known
as the composite purchasing managers index, fell to 51.3 from 52.6
in October. A reading above 50 indicates that activity increased,
and a reading below that level shows that activity decreased.
Other details recorded by the surveys point to continued growth
in the months ahead, with new orders picking up. However,
businesses cut some jobs, a sign they aren't confident that demand
will continue to rise.
Much will depend on how long the sense of heightened insecurity
that has followed the attacks persists, and how weakened business
and consumer confidence will be as a consequence. Tighter controls
on movement across Europe's borders could slow trade, while
tourists may stay away from one of the world's most visited
cities.
The French economy returned to growth in the three months to
September, having stagnated in the three months to June. But it has
struggled to recover from the 2008 financial crisis and the
eurozone debt crisis that followed, with the unemployment rate
still in double-digits.
Jack Kennedy, an economist at Markit, said the PMIs for October
and December indicate the economy is on course to grow at the same
0.3% rate in the final quarter as in the three months to
September.
Write to Paul Hannon at paul.hannon@wsj.com
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(END) Dow Jones Newswires
November 23, 2015 04:25 ET (09:25 GMT)
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