French manufacturing activity surged in January as the country became the fastest-growing of the major euro zone economies, but it is likely to continue to shed jobs until spring, a survey published today. showed.
Growth in output and new orders also charged ahead to 40-month highs, providing welcome news for the conservative government, which is banking on more robust growth to return its public deficit to within EU limits and create jobs.
The Reuters/CDAF Purchasing Managers' Index (PMI) registered 53.50 in January, an 18-month high and the fourth consecutive month the index has topped 50.0, which is the watershed between contraction and expansion.
"France is enjoying the fastest growth of the big euro zone economies at the moment," said Chris Williamson, head of economics at NTC Research, the group that compiles the survey for Reuters.
" Output and new orders are at 40-month highs, the fastest since September 2000. The PMI is only marginally below the level that it was in 2002, and it only needs to go a tiny bit higher and then it would be at these 40-month highs."