October 24, 2024 07:22 GMT
FRANCE DATA: October Flash PMI Much Weaker Than Expected
FRANCE DATA
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The French flash October PMIs were weaker than expected for the second consecutive month. Services fell further into contractionary territory at 48.3 (vs 49.9 cons, 49.6 prior), while manufacturing has been below 50 for almost two years now.
EUR STIRs have extended higher, with the implied probability of a 50bp ECB December cut now just above 50%.
Key notes from the release:
- “Restricting activity was a sharp and accelerated decrease in new order inflows”.
- “Total new business intakes fell at the steepest pace in the year-to-date, with underlying data signalling a substantial demand drag from export markets”
- “An absence of capacity pressures led workforce numbers to be reduced across the private sector”.
- “The rate of input price inflation slowed to a 47-month low at the start of the fourth quarter and was also well below its series average”.
- “After no change to selling prices in September, French companies raised their charges in October. The rate of increase was only modest, however”.
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