France's economy saw a surge in business activity in August, driven by the Olympic Games. While the services sector hit a 27-month high, manufacturing continued to struggle.
The HCOB flash purchasing managers index for France's services sector reached 55.0 in August, exceeding expectations and indicating expansion. The country's statistics office expects a 0.3 percentage point boost from the Olympics, which ended recently. The composite PMI for August, combining services and manufacturing, rose to 52.7, a 17-month high.
However, experts warn that the boost from the Olympics may be short-lived, with employment, output expectations, and backlogs of work showing signs of weakness. France's manufacturing PMI figure for August was below expectations at 42.1.
### Analysis:
The article highlights how the Olympic Games in August had a positive impact on France's economy, particularly in the services sector. The surge in business activity is reflected in the HCOB flash PMI reaching a 27-month high and the composite PMI hitting a 17-month high. However, experts caution that this boost may be temporary, as indicated by weakening employment situation and output expectations. The manufacturing sector continues to struggle, with the PMI figure falling below expectations. Investors should monitor these trends closely to assess the overall health of France's economy and make informed financial decisions.