[France] July PMI: Manufacturing Declines Amid Stable Overall Economy
FastBull Featured
2024-07-24France's July composite PMI preliminary reading reached a three-month high, with private sector output nearly stabilizing. A significant contraction in factory production partially offset a renewed expansion in service sector activities. Employment growth continued, but demand for French goods and services further declined.
On July 24 (UTC), the July S&P PMI figures were released:
HCOB Flash France Manufacturing PMI at 44.1 (expected: 45.8, Jun: 45.4). 6-month low.
HCOB Flash France Services PMI Business Activity Index at 50.7 (expected: 49.8, Jun: 49.6). 3-month high.
HCOB Flash France Composite PMI Output Index at 49.5 (expected: 49, Jun: 48.8). 3-month high.
HCOB Flash France Manufacturing PMI Output Index at 44.1 (Jun: 45.3). 6-month low.
The headline HCOB Flash France Composite PMI Output Index posted 49.5 in July. While indicative of a contraction in private sector output across France, it was one that was only marginal overall, and only just beneath the 50.0 threshold which marks stabilization.
Private sector output across France came close to stabilizing in July, although a sharper contraction in factory production did slightly offset a renewed expansion in business activity at services firms. The latest HCOB survey data also showed demand for French goods and services falling further, although employment growth was sustained. Notably, business confidence slipped for a fourth month in a row, down to its lowest level in the year-to-date.
Driving July's decline in private sector economic activity was manufacturing, which recorded a twenty-sixth straight monthly fall in output. Weak sales performances and delays from customers drove the slump in factory production, anecdotal evidence showed.
Finally, July survey data signaled a marked intensification of cost pressures across France. Overall, the increase in operating expenses was the fastest since last November. Higher commodity and raw material prices were commonly linked to the rise. In turn, selling charges were increased at the fastest rate for three months as companies endeavored to pass on some of the burden of higher costs to their clients.
On the other hand, business activity at services companies rose for the first time since April. The Olympic Games, as well as the end of the election period, were given as reasons for higher output.
France July S&P PMI
