(RTTNews) - French services sector increased for the second consecutive month in October, registering a biggest level since February 2008, a report from the Markit/CDAF showed on Wednesday.

The Markit/CDAF Services Activity Index or services PMI increased to 57.7 in October from 53.2 in September. This was the highest reading in 20-months. Economists expected a reading of 57.8 for October.

A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.

The composite output index climbed to 58.6 in October from 54.8 in September. This was the biggest level for three years.

At the same time, manufacturing production growth accelerated in October, reaching its fastest pace for more than nine years.

“Employment has now been reduced for seventeen successive months, and the latest decline was again historically steep.” the markit said.

Service providers maintained their confidence for future activity, with business expectations broadly unchanged on September’s sixty-eight month peak.

Jack Kennedy, economist at Markit said, “Whilst there are still areas of weakness, notably with regard to employment and output prices, these should begin to show improvement in the coming months if current growth momentum can be sustained.”

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Eurozone, Releases.

Subscribe by RSS Subscribe by Email