- Final manufacturing PMI 51.2 vs 50.7 prelim
- Prior 49.7
The final estimate is revised higher but the better reading in June comes with a bit of a caveat (as highlighted in bold below). Both output and new orders decreased for a second month
running as demand weakness remains particularly evident in export markets.
The supply-side also
remained problematic for businesses, as delivery times
lengthened to the greatest degree in almost four years. That being said, price pressures eased slightly so that’s a bit of good news.
S&P Global notes that:
“Export customers continued to demonstrate a lack of interest
in French goods, with new orders from abroad decreasing
at a solid and slightly quicker pace. All three main industrial
categories recorded lower demand from international clients
during June.
A major obstacle facing French manufacturers in June was
on the supply-side, with the latest survey data signalling
the most intense delivery delays in nearly four years. Poor
transport availability was often cited, in addition to shortages
and stretched supplier capacity. The respective sub-index
measuring supplier performance was a key contributor to the above-50.0 reading of the headline PMI, despite its relatively
small weight.
Regarding pricing conditions, June survey data continued to
signal elevated inflation rates for both input costs and output
charges. Higher prices paid for chemicals and other oil-based
products, packaging and transportation were mentioned
anecdotally, with many companies choosing to pass at least
some of the burden on to their clients through increased
charges. That said, selling fees were raised to a slower
extent and cost pressures cooled for the first time since last
December.”
This article was written by Justin Low at investinglive.com.