Widespread decline (Il Sole 24 Ore Radiocor) - Paris, 01 Jul - In June, France's purchasing managers' index for the manufacturing sector fell to 45.4 from 46.4 in May, according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

"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," said Norman Liebke, economist at Hamburg Commercial Bank.

"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.".

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(RADIOCOR) 01-07-24 10:07:39 (0192) 5 NNNN