France Factory Activity Shrinks The Most Since 2020

2024-12-16 08:24 By Joana Taborda 1 min. read

The HCOB Flash France Manufacturing PMI fell to 41.9 in December 2024, the lowest since May 2020, compared to 43.1 in November and worse than forecasts of 43, preliminary estimates showed.

The reading showed the manufacturing sector shrunk sharply as production levels fell the most in over four-and-a-half years, amid the adverse impact of weak demand conditions.

Also, employment declined at a faster pace but input prices rose less and selling prices were broadly unchanged as firms reported that competitive pressures had prevented them from raising their charges.

“ There is a significant lack of orders from both domestic and international markets, leading to a notable decline in employment.

Political instability in the country, weak economic conditions in sectors such as construction and the automotive industry, and reduced interest from customers in other European countries are dampening sales, as anecdotal evidence suggests", Dr Chaudhry, Economist at Hamburg Commercial Bank, said.



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