French factory activity fell in October more than expected – final PMI
PARIS, Nov 2 (Reuters) – Activity in France’s manufacturing sector weakened in October more than initially expected, according to a monthly survey, as inflationary pressures weighed on the eurozone’s second-largest economy.
The final S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 47.2 points in October from 47.7 in September. A flash forecast for October’s manufacturing PMI came in at 47.4 points.
Readings above 50 points show growth while those below 50 show contraction.
The final October manufacturing PMI reading was the lowest since May 2020, after the global economy was hit by lockdowns imposed to deal with the first wave of COVID-19.
Manufacturers also suffered in October due to a sharp drop in new orders, S&P Global added.
“The volume of new inputs purchased fell sharply in October as companies adjusted to the negative economic outlook. supply and demand that has driven up inflation, we’re still seeing historically high price pressures,” said Joe Hayes, senior economist at S&P Global Market Intelligence.
“The fall in natural gas prices across Europe over the past few weeks will be a relief for French manufacturers, as anecdotal evidence suggests that energy remains the main driver of cost pressures at present,” Hayes added. .
Reporting by Sudip Kar-Gupta; Editing by Hugh Lawson
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