France June final manufacturing PMI 46.0 vs 45.5 prelim

• Prior 45.7

That's a decent revision higher but still reaffirms a contraction in France's manufacturing sector towards the end of Q2. The recent protests are also going to factor into the hard data surely, especially in the services sector so there is that to consider. HCOB notes that:

"For the fifth month in a row, things are not looking good for the manufacturing sector in France. According to the HCOB PMIs, production continues to decline, new orders at home and abroad are falling and business expectations have also deteriorated significantly. According to INSEE, the manufacturing sector grew in the first quarter, but this will most probably not continue in the second quarter of 2023.

"After today’s PMI figures, our nowcast model now signals a 2.4% quarterly contraction in manufacturing for the second quarter, slightly more negative than our previous estimate. Capital goods are the main contributor to the contraction, according to our model.

"For the first time this year, employment in manufacturing declined, with the corresponding HCOB PMI at its lowest level since November 2020. The companies surveyed said that expiring fixed-term contracts were not renewed and jobs were eliminated without replacement. Employment increased in the consumer goods segment but decreased again in the capital goods segment.

"Fundamentally, encouraging signals are being sent from the price front. After the HCOB PMI for input prices in May signalled a decline in prices for the first time since July 2020, the corresponding HCOB PMI for selling prices now follows in June. However, a distinction must be made here according to goods categories. Thus, prices are declining exclusively for intermediate goods. For consumer and capital goods, selling prices continued to rise in June, although the pace at which prices have risen has slowed down."

/EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term