France October closing manufacturing PMI 44.5 vs 44.5 prelim

• Prior 44.6

No change to the preliminary estimate because the French manufacturing sector stays in contraction territory. New orders noticed an accelerated tempo of decline with employment situations additionally beginning to be hit more durable. The latter will likely be a priority to look at if it turns into extra widespread within the months forward, and never only for France. HCOB notes that:

“The French manufacturing sector stays mired in a deep disaster. The HCOB Manufacturing PMI for October stays firmly
in contraction territory at 44.5 factors, with manufacturing ranges sinking at their quickest tempo since January. Producers of
intermediate and capital items reported declining volumes, whereas solely the patron items sector confirmed a slight uptick.
This restricted energy in client items provides scant reduction, as broader industrial efficiency continues to slip, highlighting
the continuing pressure on French manufacturing.

“Some reduction on the pricing entrance got here as French industrial companies are inspired by an easing in enter prices in October.
Decreased value pressures largely stem from weak demand dynamics, that are additionally driving down output costs, albeit solely
fractionally. Because of this, producers are discovering some respiration room amid the broader financial slowdown, although a
sustained demand upturn stays essential for a significant restoration.

“The outlook stays bleak, with no signal of an upward pattern on the horizon. The indexes for order volumes, significantly from
worldwide shoppers, have fallen to troubling ranges. Stories point out that geopolitical tensions and a slowing international financial system
are severely impacting worldwide gross sales. On the home entrance, cautious client spending and the struggling
development sector are additional dampening demand. In response, firms are scaling again their workforces and are
rising more and more pessimistic in regards to the yr forward.”

This text was written by Justin Low at www.ubaidahsan.com.



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