- Final manufacturing PMI 51.2 vs 50.7 prelim
- Prior 49.7
The final estimate is revised higher but the better reading in June comes with a bit of a caveat (as highlighted in bold below). Both output and new orders decreased for a second month running as demand weakness remains particularly evident in export markets.
The supply-side also remained problematic for businesses, as delivery times lengthened to the greatest degree in almost four years. That being said, price pressures eased slightly so that's a bit of good news.
S&P Global notes that:
"Export customers continued to demonstrate a lack of interest in French goods, with new orders from abroad decreasing at a solid and slightly quicker pace. All three main industrial categories recorded lower demand from international clients during June.
A major obstacle facing French manufacturers in June was on the supply-side, with the latest survey data signalling the most intense delivery delays in nearly four years. Poor transport availability was often cited, in addition to shortages and stretched supplier capacity. The respective sub-index measuring supplier performance was a key contributor to the above-50.0 reading of the headline PMI, despite its relatively small weight.
Regarding pricing conditions, June survey data continued to signal elevated inflation rates for both input costs and output charges. Higher prices paid for chemicals and other oil-based products, packaging and transportation were mentioned anecdotally, with many companies choosing to pass at least some of the burden on to their clients through increased charges. That said, selling fees were raised to a slower extent and cost pressures cooled for the first time since last December."
