France PMI manufacturing was revised lower to 52.3, down from 53.1, in June. Markit noted slower rates of output and new business growth in France. Though, pace of job creation was resilient. Input cost inflation also reached four-month high.
Tim Moore, Associate Director at IHS Markit, which compiles the France Manufacturing PMI® survey, said:
“June data revealed that manufacturing growth continued to lose momentum in France, with overall business conditions improving at the slowest pace for almost a year-and-a-half. It seems that the source of the slowdown in production growth has shifted from capacity constraints and supply chain bottlenecks to a general soft patch for new order books. Export sales increased only marginally in June, which contributed to the weakest upturn in total new work since the autumn of 2016.
“Most worryingly, the latest slowdown in new business growth was accompanied by a sharp and accelerated rise in manufacturing input costs. Survey respondents widely commented on increased prices for steel and aluminium. Operating margins remained under pressure, although the rate of output price inflation picked up from the eight-month low seen in May.”
