2023-07-03 08:31:57
French manufacturing activity continued to contract sharply in June, still penalized by weak demand, according to the PMI index published on Monday by the firm S&P Global and the Hamburg Commercial Bank (HCOB). The indicator stood at 46 points in June, recovering slightly from the 45.7 points recorded the previous month.
An index above 50 reflects an expansion in activity, while an index below this threshold corresponds to a contraction. “The French manufacturing sector contracted for a fifth consecutive month in June, with the latest HCOB PMI data signaling further declines in production and new orders, both in French markets and from abroad.commented HCOB economist Norman Liebke in a statement.
This contraction in production is part of an inflationary context and excess inventories with customers. For the first time since the start of 2023, employment has fallen in the sector, with the approximately 400 manufacturing companies surveyed reporting the non-renewal of fixed-term contracts and the non-replacement of voluntary departures. The outlook is also deteriorating, with manufacturers becoming more pessimistic regarding their business growth over the next twelve months. On a more positive note, selling prices fell for the first time in three years.
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