French business activity confirmed to have stabilised in April

PARIS: French business activity stabilised last month as growth returned to the dominant services sector of the euro zone's second-biggest economy, according to a monthly poll.

Data compiler IHS Markit said its purchasing managers index for services rose to 50.5 points in April from 49.1 in March, in line with an initial, flash estimate for that April reading.

IHS Markit's overall composite PMI index, which includes the services and manufacturing sectors, also advanced to 50.1 points in April from 48.9 in March.

The final April composite PMI figure was slightly better than an initial estimate which had a 50.0 points reading for April.

IHS Markit economist Eliot Kerr said the latest data suggested that the economic hit to France from the anti-government "yellow vests" ("gilets jaunes") protests was starting to wane.

"Service sector strength was driven by the first rise in new business since the 'gilets jaunes' protests began last December. The latest PMI results therefore suggest that the economic impact of the protests is coming to an end," said Kerr.

"Moreover, any lingering effects of the protests are likely to be alleviated as the French President Emmanuel Macron prepares to cut income tax and improve pensions. These measures will likely appease protesters, whose significance had already dwindled in the last couple of months," added Kerr.