France's business activity in the private sector is continuing to decline in May due to the pandemic, but the rate of reduction is considerably slower compared to last month, after enterprises were allowed to reopen as part of the lockdown exit strategy, the IHS Markit consulting firm said on Thursday
MOSCOW (Pakistan Point News / Sputnik - 21st May, 2020) France's business activity in the private sector is continuing to decline in May due to the pandemic, but the rate of reduction is considerably slower compared to last month, after enterprises were allowed to reopen as part of the lockdown exit strategy, the IHS Markit consulting firm said on Thursday.
"French private sector activity fell further in May as restrictions designed to stem the spread of global coronavirus disease 2019 (COVID-19) continued to weigh on the economy. However, the rate of reduction in activity eased noticeably from April's unprecedented contraction as some firms began to reopen," the study, conducted based on key performance indices from May 12-20, showed.
Despite certain improvements in private sector activity in May compared to April's results, the general decrease remains historically marked, the firm said. In particular, both the manufacturing and service sectors are seeing smaller but still significant contractions in output, as well as international demand, which continues to fall under the COVID-19 related restrictions.
Notably, firms in the manufacturing industry are making a faster employment cut than service providers, according to the study.
Lastly, the report indicates that both manufacturers and service providers have a more optimistic business outlook compared to April, after France began gradually removing the coronavirus-related measures. Companies engaged in the manufacturing sector were more pessimistic about the decline in activity over the next year than those in the service industry.
The French government's lockdown exit strategy involves the gradual reopening of non-alimentary shops, educational facilities, parks, cinemas and other public places, as well as private businesses. As of Thursday, French authorities have reported 181,700 COVID-19 cases, the world's seventh-highest total, with 28,135 related deaths.
