France manufacturing activity confirmed to have eased slightly in July
- July final manufacturing PMI 49.8 vs 50.0 prelim
- Prior 51.2
It's a sluggish start to the second half of the year for French manufacturing amid an accelerated declines in new orders, production and purchasing activity. The good news at least is that cost pressures did ease markedly but S&P Global did attach a caveat to that in saying: "Most of the survey data in July was collected prior to the steep rise in oil and energy prices seen during the tail-end of the month." So, there's that.
In any case, this marks a third straight month that new order inflows fell while production volumes also decreased. On the latter, the pace of decline also gathered pace but was only modest overall at least.
Looking to price pressures, July survey data signalled the slowest rate of input price inflation in four months. However, output charges rose again and to a pace that was only narrowly weaker than in June.
S&P Global notes that:
"France's manufacturing sector is struggling once again as inflationary pressures and weak confidence undermine order books.
"Oil and gas price increases in recent weeks will signal to businesses that the broader macroeconomic and geopolitical environments are both volatile and uncertain. This will likely erode confidence further, raising the risk of further demand destruction, especially if inflation kicks higher.
"That said, we'll have to wait and see if there is any temporary reprieve through renewed safety stockpiling and advanced purchasing if customers deem price and supply risks to warrant it."
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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