Latest data released by Markit - 23 September 2021
- Prior 56.3
- Manufacturing PMI 55.2 vs 57.0 expected
- Prior 57.5
- Composite PMI 55.1 vs 55.8 expected
- Prior 55.9
The French growth momentum continues to lose steam with the services and composite readings marked down to a five-month low. Meanwhile, supply bottlenecks weighed on manufacturing activity, pushing that to an eight-month low. Markit notes that:
"Flash PMI data for September provides clear evidence that economic growth in France is cooling. The index has been trending lower since it peaked in June, and this could easily continue as we head into the autumn and winter period across Europe.
"The most striking finding from the September survey was the strong drop-off in manufacturing production growth, which panel members linked to the well-documented supply-side issues that are ongoing at present. Firms still can't secure vital components and other raw materials in a timely manner, and rising prices are causing some projects to no longer be economically viable, which is impacting demand. These issues aren't just confined to the manufacturing sector either, with service providers also affected.
"An accelerated deterioration in supplier delivery times has again pushed up inflation, after August data provided tentative hopes that some of these pressures were coming off the boil.
"Overall, slowing demand growth, rising prices and considerable supply-side issues are - to say the least - far from the ideal conditions as we head into what seems to be another challenging winter period."
