November 22, 2024 08:21 GMT
FRANCE DATA: Nov Flash PMI: Political and Economic Uncertainty Weighs
FRANCE DATA
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The French November flash PMIs were much weaker than expected, with the composite reading reaching its lowest since January at 44.8 (vs 48.3 cons, 48.1 prior). Services saw a notable miss at 45.7 (vs 49.0 cons, 49.2 prior), with political and economic uncertainty cited by respondents – a risk we had flagged in our preview.
There was also an "intensification of cost pressures across France", with services firms passing these increases onto output charges.
Key notes from the release:
- “Manufacturers cited the automotive, construction and cosmetic industries as drags, in addition to weakness across international markets”.
- “Service sector respondents remarked on political and economic uncertainty, with clients reportedly hesitant to spend. The decrease in services activity was the quickest since January”.
- “Demand conditions were detrimentally impacted by a considerable slump in new work from abroad, as evidenced by the most rapid decline in new export business since May 2020. Geopolitical uncertainty and weaker order inflows from the US were mentioned by panellists in November”.
- “November saw an intensification of cost pressures across France”… “Output charges rose in response, although service providers exclusively drove this trend as competitive pressures reportedly led factory gate prices to be discounted at the quickest pace in 15 months”.
- However, there was a “renewed uptick in private sector employment across France”… “Hiring was limited to just services firms”.
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