{"id":431235,"date":"2026-06-01T15:00:11","date_gmt":"2026-06-01T08:00:11","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/france-manufacturing-contracts-in-may-as-supply-chain-hit-intensifies\/"},"modified":"2026-06-01T15:00:11","modified_gmt":"2026-06-01T08:00:11","slug":"france-manufacturing-contracts-in-may-as-supply-chain-hit-intensifies","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/france-manufacturing-contracts-in-may-as-supply-chain-hit-intensifies\/","title":{"rendered":"France manufacturing contracts in May as supply chain hit intensifies"},"content":{"rendered":"<div>\n<ul>\n<li>Prior 52.8<\/li>\n<\/ul>\n<p class=\"text-align-justify\">The April growth, as expected, was short-lived as we see an unwinding to the frontrunning of stock in May. While the revised figures are better than initial estimates, it still points to a marginal contraction in business activity. Of note, there were fresh declines in production, new orders, purchasing volumes and stocks as<br \/>\nthe tailwinds from client stockpiling dissipated.<\/p>\n<p class=\"text-align-justify\">Meanwhile,<br \/>\naccelerated increases in both input costs and output charges<br \/>\npointed to intensifying inflationary pressures across France&#8217;s industrial sector.<\/p>\n<p class=\"text-align-justify\">Looking at the details, demand conditions were dealt a major setback with the sub-index for new orders<br \/>\nwiping out all of the gains made in April. Supply chain pressures were also more intense as vendor delivery<br \/>\ntimes lengthened to the greatest extent since January 2023. Besides that, panellists also noted that shortages of raw materials and transportation, high fuel<br \/>\ncosts and front-loaded ordering squeezed supplier capacity further on the month.<\/p>\n<p class=\"text-align-justify\">On the inflation front, the rate of input cost inflation jumped to a four-year high. Adding to that is French manufacturers raising their own prices charged in May,<br \/>\nand to the greatest degree in 40 months. Trouble, trouble.<\/p>\n<p class=\"text-align-justify\">S&amp;P Global notes that:<\/p>\n<p class=\"text-align-justify\">&#8220;As expected, April&#8217;s expansion was fleeting. Frontloaded ordering has faded, replaced by falling new<br \/>\nbusiness, production cutbacks and inventory reductions.<br \/>\nSupply chains are still adjusting to the volatility induced<br \/>\nby the war in the Middle East and ensuing energyprice shock. For example, more French manufacturers<br \/>\nexperienced delivery issues and input price rises<br \/>\nthan in April \u2013 pressures that could play out as higher<br \/>\ngoods prices and supply issues across the economy<br \/>\nmore broadly over the coming months. Unfortunately,<br \/>\nthe policy levers that can meaningfully address the<br \/>\nproblems created by an external shock on this scale are<br \/>\nlimited for indebted nations like France.&#8221;<\/p>\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prior 52.8 The April growth, as expected, was short-lived as we see an unwinding to the frontrunning of stock in May. While the revised figures are better than initial estimates, it still points to a marginal contraction in business activity. Of note, there were fresh declines in production, new orders, purchasing volumes and stocks as [&hellip;]<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-431235","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=431235"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431235\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=431235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=431235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=431235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}