2 Feb 2015
France manufacturing PMI indicates slowing of declines
FXStreet (London) - The headline Markit France Manufacturing Purchasing Managers’ Index recorded 49.2, up from 47.5 in December and the highest reading in eight months.
According to the Markit report, production at French manufacturers fell for the eighth month running in January. That said, the rate of contraction was slight and the least marked in this period.
The slower decline in output reflected a moderation in the rate of contraction of new orders. The latest fall in incoming new work was the least marked since last May. New export orders decreased for a ninth successive month, with the rate of contraction little-changed from December’s modest pace.
Employment in the French manufacturing sector fell further at the start of 2015, in line with the trend seen since April 2014. However, the rate of job shedding eased to the second-weakest in this period.
Jack Kennedy, Senior Economist at Markit, commented: “The start of the new year brought some relief for French manufacturers, with output moving closer to stabilisation after a prolonged period of decline. However, firms continue to face significant challenges amid a persistently fragile demand environment. Output price cutting was again signalled as manufacturers responded to strong competitive pressures. They were aided in this regard by falling input costs, reflecting the recent plunge in oil prices.”
According to the Markit report, production at French manufacturers fell for the eighth month running in January. That said, the rate of contraction was slight and the least marked in this period.
The slower decline in output reflected a moderation in the rate of contraction of new orders. The latest fall in incoming new work was the least marked since last May. New export orders decreased for a ninth successive month, with the rate of contraction little-changed from December’s modest pace.
Employment in the French manufacturing sector fell further at the start of 2015, in line with the trend seen since April 2014. However, the rate of job shedding eased to the second-weakest in this period.
Jack Kennedy, Senior Economist at Markit, commented: “The start of the new year brought some relief for French manufacturers, with output moving closer to stabilisation after a prolonged period of decline. However, firms continue to face significant challenges amid a persistently fragile demand environment. Output price cutting was again signalled as manufacturers responded to strong competitive pressures. They were aided in this regard by falling input costs, reflecting the recent plunge in oil prices.”