- Prior 48.8
No change to the initial print as the French manufacturing sector contracted further in November. New orders continued to fall and of note, employment was reduced for the first time since April. Adding to that, price pressures also intensified so that’s something to be wary about. HCOB notes that:
“French Manufacturing conditions remained weak in November, even as exports rebounded. The headline HCOB PMI
slipped to 47.8, from 48.8 in October, confirming the disappointing flash estimate. The downward trend is particularly evident
in the demand-related sub-indices, leading production volumes to deteriorate further and at the fastest pace since February.
Order books showed little improvement — only foreign orders managed to cross into growth territory — highlighting
persistent weak domestic demand.
“This weakness is mirrored in purchasing activity and inventory dynamics. Companies are scaling back input purchases
while simultaneously reducing inventories, signalling lower production requirements. Payroll numbers, which embarked on a
brief growth stint between May and October, fell back into contraction, pointing to a net fall in employment in November.
“Price development adds further pressure. The HCOB PMI price data indicate that manufacturers face intense competition,
containing output prices. Against this backdrop, margins are likely to compress.
“The negative trend spans all three sub-sectors. While investment goods conditions have been declining for several months,
momentum in consumer goods turned negative after three months of improvement. Interestingly, French manufacturers
reported a marked improvement in future expectations, which contrasts with the prevailing weakness in current conditions.”
This article was written by Justin Low at investinglive.com.