- Prior 48.
- Manufacturing PMI 47.8 vs 49.0 expected
- Prior 48.8
- Composite PMI 49.9 vs 48.1 expected
- Prior 47.7
- Full report here
Key Findings:
- Fresh expansion in services activity helps French economy stabilise in
November
Comment:
Commenting on the flash PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“The French private sector shows signs of stabilisation in November after October’s moderate decline, which we attributed
largely to political turmoil and the resulting uncertainty. In November, the HCOB Flash PMIs point to economic consolidation,
but sectoral momentum is divided: while the service sector is strengthening, the manufacturing sector remains under
pressure. Given the unresolved budget and persistent political tension, the foundation of this stabilisation remains on shaky
ground.
“The situation in the service sector has brightened somewhat. Demand-related indicators such as business activity and new
orders have climbed above the growth threshold for the first time this year. Whether this marks the beginning of a
sustainable recovery, however, will only become clear in the coming months. Some sub-indices, such as outstanding
business and employment, were weak, underscoring the fragility of the rebound.
“The situation in the manufacturing sector remains tense. The PMI deteriorated in November, meaning that manufacturing
remains the problem child of the economy. Production and the order situation in particular leave much to be desired.
Production and order intakes are particularly disappointing. Despite these structural challenges, compounded by US trade
policy and Chinese competition, manufacturers are markedly more optimistic about the future in November.
“Cost inflation accelerated, driven by both the manufacturing and service sectors. Meanwhile, pricing power of companies
weakened, as average output prices stayed at the same level observed in October. Consequently, profit margins of
companies are likely to have shrunk in November.”
This article was written by Giuseppe Dellamotta at investinglive.com.