Supply Issues Ease, Weak Demand Persists in Dec PMIs

France flash December PMIs saw manufacturing tick up by 0.6 points to 48.9 (slightly stronger than expected), whilst services dipped by 1.2 points to 48.1 (slightly weaker than expected).

Highlights from the press release:

• French composite and services PMIs edged down to fresh 22-month lows in December, with the composite index indicating a second month of contractive activity.
• New orders rate of decline was broadly unchanged from November (the sharpest since Feb '21).
• Factory output was boosted by improvements in critical inputs supply.
• Employment increased across services, fell in manufacturing for the first time since Jan '21.
• Input price inflation was unchanged, whilst output price inflation jumped.
• Joe Hayes, Senior Economist at S&P Global: "The PMI survey suggests the industrial economy has been in a recession throughout the second half of 2022".