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Manufacturing PMI in France dropped to 45.40 points in June from 46.40 points in May 2024, indicating a solid and accelerated pace of decline in the manufacturing sector. Consensus estimates were at 45.3.
Key findings include: new orders decrease at quicker pace, weighing on production; accelerated declines seen for purchasing activity and employment; price pressures intensify, with output charge inflation at 15-month high.
“Not only did France’s manufacturing sector plunge deeper into decline, but its contraction was also widespread in June as activity in the consumer goods sub-sector dropped for the first time since January. For the other two segments – intermediate and capital goods – factory output remained depressed, particularly at the latter. Indeed, reports from the survey panel noted weaker sales to clients in the automotive industry specifically.” Norman Liebke, Economist at Hamburg Commercial Bank, said.
“Lower demand for French consumer goods was likewise a major factor behind the steeper reduction in total new orders, while purchasing activity fell at the strongest rate since December 2023. Additionally, the level of confidence in the outlook dropped below its historic average, reinforcing the pessimistic view portrayed by the forward-looking input purchasing and new orders indicators.” he added.
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