France June remaining manufacturing PMI 45.4 vs. 45.3 prelim

• Manufacturing PMI (final) 45.4 vs. 45.3 prelim and 46.4 prior.

Key findings:

• New orders decrease at quicker pace, weighing on production.
• Accelerated declines seen for purchasing activity and employment.
• Price pressures intensify, with output charge inflation at 15-month high.

Comment:

Commenting on the PMI data, Norman Liebke, Economist at Hamburg Commercial Bank, said:
“Not only did France’s manufacturing sector plunge deeper into decline, but its contraction was also widespread in June as
activity in the consumer goods sub-sector dropped for the first time since January. For the other two segments –
intermediate and capital goods – factory output remained depressed, particularly at the latter. Indeed, reports from the
survey panel noted weaker sales to clients in the automotive industry specifically.”

“Lower demand for French consumer goods was likewise a major factor behind the steeper reduction in total new orders,
while purchasing activity fell at the strongest rate since December 2023. Additionally, the level of confidence in the outlook
dropped below its historic average, reinforcing the pessimistic view portrayed by the forward-looking input purchasing and
new orders indicators.”

“Of concern will be the re-acceleration of inflation in the manufacturing sector. Costs and output prices rose in all three major
sub-sectors, although particularly steep input price inflation at intermediate goods makers suggests strengthening pipeline
price pressures for the manufacturing sector as a whole.”