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Manufacturing Sentiment Signals IP Upturn

FRANCE DATA
MNI (London)

FRANCE JAN MANUF. SENTIMENT 103 (FCST 102); DEC 102r

The French manufacturing climate improved for a second consecutive month, up one point to 103 in January, from an upwardly revised December reading. This is above the long-run average.

  • Foreign order books lifted the indicator. Expected Prices moderated significantly, a positive signal for further easing in PPI and stock levels fell notably as firms shift towards pre-pandemic inventory levels in order to save overhead costs.
  • Transport and auto-sector outlooks rebounded from two months of decline.
  • Yet French industrial production has had a shaky start to the year, French auto-industry strength should provide a boost, however, strikes at electricity firms will likely be a drag on the headline print.

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