PMI: Highlights pretty dreary

Price pressures started to easy, new orders were weak but employment growth remained steady (in one of the only positive points in the survey). The commentary is a lot more pessimistic than the increase in the manufacturing PMI would suggest (versus both last month and consensus). Highlights from the press release:

• "Rates of both input cost and output price inflation were at the slowest in nine months, albeit still sharp by historical standards."
• "Receding supply-related disruptions led the rate of input cost inflation to ease during November to its weakest in nine months. The slowing of cost pressures within the manufacturing sector was especially notable, with the respective index here falling by seven points to its lowest in almost two years. Some companies mentioned falling prices for certain raw materials such as wood and metals. "
• " Manufacturers continued to record rapidly falling new order intakes, although the severity did ease when compared with October. Services firms recorded their first reduction in new business since August. Surveyed companies in both sectors linked weaker demand conditions to high prices. Companies also noted the adverse effect that high energy costs has had on the purchasing power of their customers."
• "In both sectors, the declines in new orders exceeded those seen in output. The latest survey data suggests that this was explained by the completion of outstanding orders, helping prevent activity levels falling by further in November. Backlogs of work across the French private sector fell for the first time since February 2021"
• "There were signs that the darkening business outlook had fed through to hiring decisions in November. Although employment growth was sustained for a twenty-third successive month, the rate of job creation was the weakest since May 2021"