France PMI Manufacturing was finalized at 55.6 in December, down from November’s 55.9. Markit noted trends in output and new orders improved but rounded off subdued quarter. Delivery delays were at least severe since March as pressures abated. Purchasing activity rose further while firms stockpiled at record pace.
Joe Hayes, Senior Economist at IHS Markit, said:
“The December PMI survey gave us a few reasons to be a bit more optimistic towards the manufacturing sector looking ahead. The Suppliers’ Delivery Times Index registered a meaningful move higher in December. We’re by no means anywhere near out of the woods yet, and a large portion of our survey panel are still seeing shortages and increasing lead times, but there were some reports of improving stock levels at vendors.
“Firms took advantage though, and we saw purchasing activity growth accelerate and stocks of purchases accumulate to the fastest extent on record, which will certainly help firms increase production levels.
“We also saw continued hiring across the sector, despite anecdotal evidence suggesting that demand conditions still remain subdued. Manufacturers expect order books to begin filling a lot faster as the supply situation improves.
“Overall, the stabilisation in the output and new order indices following the harsh slowdown in the second half of 2021, combined with some alleviation of supply-side constraints, suggests growth rates could get better in 2022.”
