- Markit
While services sector in France seems to be growing again in January 2016, manufacturing is now on the verge of contraction. A monthly PMI survey revealed that manufacturing PMI stood at 50 points this month, down from 51.4 points in December, whereas analysts foresaw an increase to 51.6 points. Services PMI indicator was at 50.6 points, up from 49.8 in December. All readings were preliminary at this stage and could be subjects to changes later in early February. As for Germany, here both vital sectors of the country's economy continued developing at a more positive pace than their French neighbours. Manufacturing and services PMI dipped down to 52.1 and 55.4 points in January from 53.2 and 56 points in December, respectively. The pan-European reading for the whole European production and services sector decreased to 52.3 and 53.6 points, accordingly. This European indicator depends on responses from 3000 companies in the region and is therefore considered as a very reliable for tracking sentiment among businesses. Industry analysts have come to an agreement that a slowdown was predominantly caused by a recent market turmoil that sent global stock and commodity markets into correction or even bear market territory. Despite that, Europe is set to continue recovering in 2016 and January PMIs confirm that activity is growing rather than declining in most of the European economic powerhouses.
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