- Final manufacturing PMI 45.3 versus 44.9 expected and 46.2 previously.
Main findings:
- Production in French factories is limited by the rapid fall in new orders.
- Arrears used to support production; the numbers are still decreasing.
- Input price inflation at 14-month high amid rising material costs.
Comment:
Commenting on the PMI data, Norman Liebke, economist at Hamburg Commercial Bank, said: “French manufacturing production remained subdued in April. The manufacturing sector continues to thwart the recovery of the overall economy, but this should only be temporary. The production index fell, reflecting a more rapid deterioration in demand. Nevertheless, we expect a recovery in the manufacturing sector in the third quarter of this year.
“Consumer goods remain at the forefront of the manufacturing recovery. While the other two segments – intermediate goods and capital goods – continue to decline at a rapid pace. This divergence generally continues from the middle of 2023 in terms of production and new overall orders “Input prices are increasingly high. Input prices increased after several months of continuous decline, mainly due to the consumer goods sector. Anecdotal evidence suggests that the rise in input costs was due to rising prices of oil-based products, steel and food products. “French manufacturers are particularly optimistic about the future.
The corresponding index of production expectations is above 50 for the third consecutive month. Manufacturers are building their optimism by expecting stronger demand domestically and internationally, while also hoping for improved economic conditions. In addition, a slower pace of job cuts among French manufacturers is also part of a more optimistic outlook. »
France manufacturing PMI index
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