December 16, 2024 08:33 GMT
FRANCE DATA: Dec Flash PMI: Weak Demand Weighs On Sales, Orders and Employment
FRANCE DATA
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The French flash December composite PMI was a little better than expected at 46.7 (vs 46.0 cons, 45.9 prior). However, this masked divergence between services (48.2 vs 46.9 cons and prior) and manufacturing (41.9 vs 43.0 cons, 43.1 prior). This was the weakest manufacturing PMI reading in 55-months.
Key notes from the release:
- "Surveyed manufacturers frequently remarked on the adverse impact of weak demand conditions. Services companies on the panel also noted lower sales, with some respondents mentioning that political uncertainty was a hindrance"
- "Domestic political instability, softness in industries such as construction and automotives and lower interest from clients elsewhere in Europe dampened sales volumes, according to anecdotal evidence".
- "Indeed, the latest survey data revealed a steep month-on-month drop in new export orders, and one that was markedly quicker than that seen for new business overall"
- "Persistent evidence of spare capacity, coupled with a further shrinkage of new order intakes, led employment levels to fall"..."Labour market trends deteriorated in both monitored sectors, with a faster pace of factory job shedding combining with renewed headcount cuts at services companies".
- "Both manufacturers and service providers recorded weaker rises in their input prices"...", selling prices were broadly unchanged on the month as firms in both sectors reported that competitive pressures had prevented them from raising their charges".
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